Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Jan. 31, 2021 | Feb. 28, 2021 | Oct. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 31, 2021 | ||
Current Fiscal Year End Date | --01-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-39502 | ||
Entity Registrant Name | Sumo Logic, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 27-2234444 | ||
Entity Address, Address Line One | 305 Main Street | ||
Entity Address, City or Town | Redwood City | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94063 | ||
City Area Code | 650 | ||
Local Phone Number | 810-8700 | ||
Title of 12(b) Security | Common stock, par value $0.0001 per share | ||
Trading Symbol | SUMO | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1.4 | ||
Entity Common Stock, Shares Outstanding | 102,703,682 | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement for the 2021 Annual Meeting of Stockholders are incorporated herein by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. Such proxy statement will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended January 31, 2021. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001643269 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) shares in Thousands, $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 404,140 | $ 101,513 |
Accounts receivable, net | 44,761 | 27,011 |
Prepaid expenses | 10,509 | 6,305 |
Deferred sales commissions, current | 12,790 | 8,884 |
Other current assets | 3,110 | 1,604 |
Total current assets | 475,310 | 145,317 |
Property and equipment, net | 4,156 | 2,993 |
Goodwill | 50,672 | 50,672 |
Acquired intangible assets, net | 10,656 | 17,415 |
Deferred sales commissions, noncurrent | 27,857 | 17,479 |
Other assets | 1,856 | 3,885 |
Total assets | 570,507 | 237,761 |
Current liabilities: | ||
Accounts payable | 4,832 | 6,151 |
Accrued expenses and other current liabilities | 23,316 | 20,371 |
Deferred revenue, current | 102,625 | 85,715 |
Total current liabilities | 130,773 | 112,237 |
Deferred revenue, noncurrent | 4,076 | 2,970 |
Redeemable convertible preferred stock warrant liability | 0 | 270 |
Other liabilities | 4,246 | 2,691 |
Total liabilities | 139,095 | 118,168 |
Commitments and contingencies (Note 7) | ||
Redeemable convertible preferred stock $0.0001 par value— 100,000 shares and 65,091 shares authorized as of January 31, 2021 and 2020, respectively; no shares and 63,762 shares issued and outstanding (liquidation preference $344,542) as of January 31, 2021 and 2020, respectively | 0 | 340,167 |
Stockholders’ equity (deficit): | ||
Common stock $0.0001 par value—1,000,000 and 122,000 shares authorized as of January 31, 2021 and 2020, respectively; 102,484 and 18,984 shares issued and outstanding as of January 31, 2021 and 2020, respectively | 10 | 2 |
Additional paid-in-capital | 829,238 | 97,131 |
Accumulated other comprehensive loss | (45) | (213) |
Accumulated deficit | (397,791) | (317,494) |
Total stockholders’ equity (deficit) | 431,412 | (220,574) |
Total liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit) | $ 570,507 | $ 237,761 |
Redeemable convertible preferred stock, shares authorized (in shares) | 100,000 | 65,091 |
Common stock, shares authorized (in shares) | 1,000,000 | 122,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Jan. 31, 2021 | Jan. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Redeemable convertible preferred stock, par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Redeemable convertible preferred stock, shares authorized (in shares) | 100,000,000 | 65,091,000 |
Redeemable convertible preferred stock, shares issued (in shares) | 0 | 63,762,000 |
Redeemable convertible preferred stock, shares outstanding (in shares) | 0 | 63,762,000 |
Redeemable convertible preferred stock, liquidation preference | $ 344,542,000 | $ 344,542,000 |
Common stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 122,000,000 |
Common stock, shares issued (in shares) | 102,484,000 | 18,984,000 |
Common stock, shares outstanding (in shares) | 102,484,000 | 18,984,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Income Statement [Abstract] | |||
Revenue | $ 202,637,000 | $ 155,056,000 | $ 103,642,000 |
Cost of revenue | 56,492,000 | 44,498,000 | 29,010,000 |
Gross profit | 146,145,000 | 110,558,000 | 74,632,000 |
Operating expenses: | |||
Research and development | 70,206,000 | 52,462,000 | 36,240,000 |
Sales and marketing | 109,190,000 | 107,239,000 | 72,218,000 |
General and administrative | 44,408,000 | 37,263,000 | 14,347,000 |
Impairment of capitalized internal-use software | 0 | 6,689,000 | 0 |
Total operating expenses | 223,804,000 | 203,653,000 | 122,805,000 |
Loss from operations | (77,659,000) | (93,095,000) | (48,173,000) |
Interest and other (expense) income, net | (419,000) | 1,982,000 | 1,096,000 |
Interest expense | (703,000) | (123,000) | (105,000) |
Loss before provision for income taxes | (78,781,000) | (91,236,000) | (47,182,000) |
Provision for income taxes | 1,516,000 | 901,000 | 607,000 |
Net loss | $ (80,297,000) | $ (92,137,000) | $ (47,789,000) |
Net loss per share, basic and diluted (in USD per share) | $ (1.65) | $ (6.18) | $ (3.88) |
Weighted-average number of shares outstanding, basic and diluted (in shares) | 48,805 | 14,907 | 12,314 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (80,297) | $ (92,137) | $ (47,789) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 168 | (116) | (241) |
Total comprehensive loss | $ (80,129) | $ (92,253) | $ (48,030) |
Consolidated Statements of Rede
Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Additional Paid-in CapitalCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment |
Beginning balance at Jan. 31, 2018 | $ (163,025) | $ 1 | $ 14,349 | $ 49 | $ 144 | $ (177,519) | $ (49) |
Beginning balance (in shares) at Jan. 31, 2018 | 11,790,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201609Member | ||||||
Issuance of common stock upon exercise of stock options | $ 1,804 | 1,804 | |||||
Issuance of common stock upon exercise of stock options (in shares) | 1,275,000 | ||||||
Vesting of early exercised options | 34 | 34 | |||||
Common stock issued and awards assumed in connection with acquisitions | 95 | 95 | |||||
Stock-based compensation | 6,658 | 6,658 | |||||
Foreign currency translation adjustments | (241) | (241) | |||||
Net loss | (47,789) | (47,789) | |||||
Ending balance at Jan. 31, 2019 | (202,464) | $ 1 | 22,989 | (97) | (225,357) | ||
Ending balance (in shares) at Jan. 31, 2019 | 13,065,000 | ||||||
Beginning balance at Jan. 31, 2018 | $ 234,095 | ||||||
Beginning balance (in shares) at Jan. 31, 2018 | 53,776,000 | ||||||
Ending balance (in shares) at Jan. 31, 2019 | 53,776,000 | ||||||
Ending balance at Jan. 31, 2019 | $ 234,095 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock upon exercise of stock options | 2,922 | 2,922 | |||||
Issuance of common stock upon exercise of stock options (in shares) | 1,788,000 | ||||||
Issuance of common stock upon early exercise of stock options (in shares) | 349,000 | ||||||
Vesting of early exercised options | 733 | 733 | |||||
Common stock issued and awards assumed in connection with acquisitions | 47,923 | $ 1 | 47,922 | ||||
Common stock issued and awards assumed in connection with acquisitions (in shares) | 3,782,000 | ||||||
Stock-based compensation | 22,565 | 22,565 | |||||
Foreign currency translation adjustments | (116) | (116) | |||||
Net loss | (92,137) | (92,137) | |||||
Ending balance at Jan. 31, 2020 | (220,574) | $ 2 | 97,131 | (213) | (317,494) | ||
Ending balance (in shares) at Jan. 31, 2020 | 18,984,000 | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Issuance of Series G redeemable convertible preferred stock, net issuance of costs of $3,927 | $ 106,072 | ||||||
Issuance of Series G redeemable convertible preferred stock, net of issuance costs of $3,927 (in shares) | 9,986,000 | ||||||
Ending balance (in shares) at Jan. 31, 2020 | 63,762,000 | ||||||
Ending balance at Jan. 31, 2020 | $ 340,167 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock upon initial public offering, net of underwriting discounts and issuance costs | 342,685 | $ 2 | 342,683 | ||||
Issuance of common stock upon initial public offering, net of underwriting discounts and issuance costs (in shares) | 17,020,000 | ||||||
Conversion of convertible redeemable preferred stock to common stock upon initial public offering | 340,167 | $ 6 | 340,161 | ||||
Conversion of convertible redeemable preferred stock to common stock upon initial public stock offering (in shares) | 63,762,000 | ||||||
Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital upon initial public offering | 512 | 512 | |||||
Issuance of common stock upon exercise of stock options | 7,282 | 7,282 | |||||
Issuance of common stock upon exercise of stock options (in shares) | 2,462,000 | ||||||
Vesting of early exercised options | 197 | 197 | |||||
Common stock issued and awards assumed in connection with acquisitions (in shares) | 256,000 | ||||||
Stock-based compensation | 41,272 | 41,272 | |||||
Foreign currency translation adjustments | 168 | 168 | |||||
Net loss | (80,297) | (80,297) | |||||
Ending balance at Jan. 31, 2021 | 431,412 | $ 10 | $ 829,238 | $ (45) | $ (397,791) | ||
Ending balance (in shares) at Jan. 31, 2021 | 102,484,000 | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Conversion of convertible redeemable preferred stock to common stock upon initial public offering | $ (340,167) | ||||||
Conversion of convertible redeemable preferred stock to common stock upon initial public offering (in shares) | (63,762,000) | ||||||
Ending balance (in shares) at Jan. 31, 2021 | 0 | ||||||
Ending balance at Jan. 31, 2021 | $ 0 |
Consolidated Statements of Re_2
Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Parenthetical) $ in Thousands | 12 Months Ended |
Jan. 31, 2020USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Payments of issuance costs | $ 3,927 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Cash flows from operating activities | |||
Net loss | $ (80,297,000) | $ (92,137,000) | $ (47,789,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 8,298,000 | 4,345,000 | 2,013,000 |
Amortization of deferred sales commissions | 11,476,000 | 8,775,000 | 7,016,000 |
Stock-based compensation, net of amounts capitalized | 40,951,000 | 22,034,000 | 6,577,000 |
Impairment of capitalized internal-use software | 0 | 6,689,000 | 0 |
Other | 635,000 | 592,000 | 262,000 |
Changes in operating assets and liabilities, net of impact of acquisitions: | |||
Accounts receivable | (17,809,000) | (9,352,000) | 372,000 |
Prepaid expenses | (4,199,000) | (945,000) | (776,000) |
Other assets | (2,574,000) | (94,000) | (483,000) |
Deferred sales commissions | (25,771,000) | (16,093,000) | (10,658,000) |
Accounts payable | (1,345,000) | 732,000 | (1,423,000) |
Accrued expenses and other current liabilities | 4,121,000 | 6,492,000 | 1,421,000 |
Deferred revenue | 18,016,000 | 19,907,000 | 21,114,000 |
Other liabilities | 1,319,000 | 486,000 | 227,000 |
Net cash used in operating activities | (47,179,000) | (48,569,000) | (22,127,000) |
Cash flows from investing activities | |||
Purchases of property and equipment | (1,138,000) | (2,068,000) | (467,000) |
Capitalized internal-use software costs | (1,205,000) | (5,588,000) | (1,077,000) |
Cash paid for acquisitions, net of cash and restricted cash acquired | 0 | (15,729,000) | 0 |
Net cash used in investing activities | (2,343,000) | (23,385,000) | (1,544,000) |
Cash flows from financing activities | |||
Proceeds from initial public offering, net of underwriting discounts | 349,166,000 | 0 | 0 |
Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs | 0 | 106,072,000 | 0 |
Proceeds from borrowings | 24,250,000 | 0 | 0 |
Repayment of borrowings | (24,250,000) | 0 | 0 |
Payments of deferred offering costs | (4,362,000) | (2,018,000) | 0 |
Proceeds from exercise of common stock options | 7,282,000 | 4,081,000 | 1,804,000 |
Cash paid for holdback consideration in connection with acquisition | (100,000) | 0 | (150,000) |
Net cash provided by financing activities | 351,986,000 | 108,135,000 | 1,654,000 |
Effect of exchange rate changes on cash and cash equivalents | 163,000 | (39,000) | (205,000) |
Change in cash and cash equivalents and restricted cash | 302,627,000 | 36,142,000 | (22,222,000) |
Beginning of period | 101,813,000 | 65,671,000 | 87,893,000 |
End of period | 404,440,000 | 101,813,000 | 65,671,000 |
Supplemental disclosures of cash flow information | |||
Cash paid for income taxes | 1,194,000 | 648,000 | 317,000 |
Cash paid for interest | 733,000 | 12,000 | 0 |
Supplemental non-cash investing and financing information | |||
Conversion of redeemable convertible preferred stock to common stock | 340,161,000 | 0 | 0 |
Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital | 512,000 | 0 | 0 |
Vesting of early exercised options | 197,000 | 733,000 | 34,000 |
Common stock and assumed awards issued as consideration for acquisitions | 0 | 47,923,000 | 95,000 |
Stock-based compensation capitalized as internal-use software costs | 321,000 | 531,000 | 81,000 |
Issuance of redeemable convertible preferred stock warrants | 0 | 71,000 | 0 |
Deferred offering costs accrued but not yet paid | 99,000 | 1,266,000 | 0 |
Property and equipment accrued but not yet paid | 15,000 | 0 | 0 |
Reconciliation of cash, cash equivalents, and restricted cash to consolidated balance sheets | |||
Total cash, cash equivalents, and restricted cash | $ 404,440,000 | $ 65,671,000 | $ 87,893,000 |
Description of Business and Bas
Description of Business and Basis of Presentation | 12 Months Ended |
Jan. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Organization and Nature of Operations Sumo Logic, Inc. (the “Company”) was incorporated in Delaware in March 2010. The Company provides, on a cloud-native software-as-a-service (“SaaS”) delivery model, a software platform that enables organizations of all sizes to address the challenges and opportunities presented by digital transformation, modern applications, and cloud computing. The platform enables organizations to automate the collection, ingestion, and analysis of application, infrastructure, security, and IoT data to derive actionable insights. Basis of Presentation and Principles of Consolidation The Company’s consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company’s consolidated financial statements and accompanying notes include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Fiscal Year The Company’s fiscal year ends on January 31. Unless otherwise stated, references to year in these consolidated financial statements relate to the above described fiscal year rather than calendar year. Initial Public Offering On September 21, 2020, the Company completed its initial public offering (“IPO”), in which it sold 14,800,000 shares of common stock at a public offering price $22.00 per share. On October 9, 2020, the Company sold an additional 2,220,000 shares of common stock at a public offering price of $22.00 per share pursuant to the exercise of the underwriters’ option to purchase additional shares. The Company received net proceeds of $342.7 million, after deducting underwriters’ discounts and commissions and offering costs of $31.8 million. Immediately prior to the IPO, all shares of outstanding redeemable convertible preferred stock were converted into 63,761,950 shares of common stock on a one-to-one basis. Redeemable convertible preferred stock warrants also converted into 32,276 warrants to purchase common stock on a one-to-one basis. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Segment Information The Company operates as one operating and reportable segment. The Company’s chief operating decision maker is its chief executive officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, and allocating resources. Use of Estimates and Judgments The preparation of the Company’s consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, as of the date of the financial statements, and the reported amounts of income and expenses during the reporting period. These estimates are based on information available as of the date of the financial statements and may involve subjective or significant judgment by the Company; therefore, actual results could differ from the Company’s estimates. The Company’s accounting policies that involve judgment include revenue recognition, period of benefit for deferred sales commissions, assumptions used for estimating the fair value of common stock to calculate stock-based compensation (prior to the closing of the IPO), capitalization of internal-use software costs, valuation of goodwill and intangible assets, allowance for doubtful accounts, and valuation allowances associated with income taxes. COVID-19 While the duration and extent of the COVID-19 pandemic depends on future developments that cannot be accurately predicted at this time, such as the extent and effectiveness of containment actions, it has already had an adverse effect on the global economy and the lasting effects of the pandemic continue to be unknown. The Company may experience customer losses, including due to bankruptcy or customers ceasing operations, which may result in delays in collections or an inability to collect accounts receivable from these customers. The extent to which COVID-19 may continue to impact the Company’s financial condition, results of operations, or liquidity continues to remain uncertain, and as of the date of issuance of these financial statements, the Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or an adjustment to the carrying value of the Company’s assets or liabilities. These estimates may change, as new events occur and additional information is obtained, which will be recognized in the consolidated financial statements as soon as they become known. Actual results could differ from those estimates, and any such differences may be material to the Company’s financial statements. In May 2020, as part of the Company’s efforts to respond to the COVID-19 pandemic and ensure longer-term financial stability, the Company initiated cost reduction measures, including a headcount reduction. The headcount reduction resulted in $1.2 million of severance and benefits expense and $0.1 million in stock-based compensation expense for the year ended January 31, 2021. Revenue Recognition In accordance with ASC 606, revenue is recognized when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration the Company expects to be entitled to receive in exchange for these services. The Company determines revenue recognition through the following steps: 1. Identification of the contract, or contracts, with the customer The Company considers the terms and conditions of the contract and its customary business practices in identifying contracts under ASC 606. The Company determines it has a contract with a customer when the contract is fully approved by both parties, it can identify each party’s rights regarding the services to be transferred, it can identify the payment terms for the services, and it has determined the customer has the ability and intent to pay and the contract has commercial substance. At contract inception, the Company evaluates whether two or more contracts should be combined and accounted for as a single contract and whether the combined or single contract includes more than one performance obligation. The Company applies judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s historical payment experience or, in the case of a new customer, credit and financial information pertaining to the customer. 2. Identification of the performance obligations in the contract Performance obligations promised in a contract are identified based on the services and the products that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from third parties or the Company, and are distinct in the context of the contract, whereby the transfer of the services and the products is separately identifiable from other promises in the contract. The Company’s performance obligations consist of subscription and support services. 3. Determination of the transaction price The transaction price is determined based on the consideration to which the Company expects to be entitled in exchange for transferring services to the customer. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. The Company’s policy is to exclude sales and other indirect taxes when measuring the transaction price. None of the Company’s contracts contain a significant financing component. 4. Allocation of the transaction price to the performance obligation in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price (“SSP”). The Company determines the SSP based on an observable standalone selling price when it is available, as well as other factors, including the price charged to customers, its discounting practices, and the Company’s overall pricing objectives, while maximizing observable inputs. 5. Recognition of the revenue when, or as, the Company satisfies a performance obligation Revenue is recognized at the time the related performance obligation is satisfied by transferring the control of the promised service to a customer. Revenue is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those services. The Company generates all its revenue from contracts with customers. The Company generates revenue from subscriptions to customers that enable them to access the Company’s cloud-based platform. Subscription arrangements with customers do not provide the customer with the right to take possession of the Company’s software at any time. Instead, customers are granted continuous access to the platform over the contractual period. A time-elapsed method is used to measure progress as control is transferred evenly over the contractual period. Accordingly, the fixed consideration related to subscription fees is generally recognized on a straight-line basis over the contract term, commencing on the date the service is made available to the customer and all other revenue recognition criteria have been met. The typical subscription term is one The Company allocates revenue to each performance obligation based on its relative standalone selling price and generally determines standalone selling prices based on a range of actual prices charged to customers. Accounts Receivable, Net and Contract Assets Accounts receivable consist of amounts billed and currently due from customers. The Company’s accounts receivable are subject to collection risk. Gross accounts receivable are adjusted for estimated losses resulting from the inability of the Company’s customers to fulfill their payment obligations. The Company periodically reviews factors such as past collection experience, specific allowances for known troubled accounts, and other currently available evidence to determine the best estimate of probable losses inherent in the receivables. As of January 31, 2021, there was $0.1 million recorded as an allowance for doubtful accounts for the Company’s accounts receivables. There was no allowance for doubtful accounts as of January 31, 2020. As of January 31, 2021, one customer accounted for 10% of total accounts receivable. As of January 31, 2020, no individual customer accounted for 10% or more of total accounts receivable. The Company performs ongoing credit evaluations of its customers and maintain allowances for potential credit losses on customers’ accounts when deemed necessary. The Company records an unbilled receivable when revenue recognized on a contract exceeds the billings to date for that contract and the right to consideration is unconditional when only passage of time is required before payment of that consideration is due. Unbilled receivables totaled $1.0 million and $2.2 million as of January 31, 2021 and 2020, respectively, and were recorded within accounts receivable, net on the consolidated balance sheets. The Company records contract assets when revenue recognized on a contract exceeds the billings to date for that contract and the right to consideration is conditional. Contract assets totaled $1.6 million as of January 31, 2021 and were recorded within other current assets on the consolidated balance sheets. There were no contract assets as of January 31, 2020. Deferred Revenue Deferred revenue consists of non-cancelable customer billings, or payments received in advance of revenue recognition. The Company generally invoices its customers in monthly, quarterly, or annual installments. Accordingly, the deferred revenue balance does not represent the total contract value of annual or multi-year, non-cancelable subscription arrangements. Deferred revenue that will be recognized within the next twelve months is recorded as current deferred revenue, and the remaining portion is recorded as noncurrent. Deferred Sales Commissions The Company capitalizes certain sales commissions, including related payroll taxes, earned by the Company’s sales force, which are considered to be incremental costs that would not be incurred absent the contract, and recoverable costs of acquiring a contract with a customer. Commissions earned on the initial acquisition of a contract are amortized over a period of benefit of five years on a straight-line basis. The period of benefit is estimated by considering factors such as the expected life of the Company’s subscription contracts, historical customer attrition rates, technological life of the Company’s platform, the impact of competition in its industry, as well as other factors. Commissions for renewals are considered not commensurate with the commission paid for the acquisition of the initial contract and are therefore amortized over the contractual term of the contract, consistent with the pattern of revenue recognition for each performance obligation. The Company capitalized $25.8 million and $16.1 million in sales commissions for the years ended January 31, 2021 and 2020, respectively. Amortized costs are included in sales and marketing expense in the accompanying consolidated statements of operations and were $11.5 million, $8.8 million, and $7.0 million for the years ended January 31, 2021, 2020, and 2019, respectively. There was no impairment loss in relation to deferred sales commissions for the years ended January 31, 2021, 2020, or 2019. Sales commissions that will be amortized within the next twelve months are included in deferred sales commissions, current, on the consolidated balance sheets. Any sales commissions that will be amortized in any period subsequent to the next twelve months are included in deferred sales commissions, noncurrent, on the consolidated balance sheets. Concentrations of Risk The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. Although the Company deposits its cash with high-quality credit rated financial institutions, the deposits, at times, may exceed federally insured limits. The Company has not experienced any losses on its deposits of cash and cash equivalents. Cash equivalents consist of money market funds which are invested through financial institutions in the United States. Management believes that the institutions are financially stable and, accordingly, minimal credit risk exists. Foreign Currency Transactions The functional currency of the Company’s foreign subsidiaries is the respective local currency. All asset and liability accounts of the Company’s foreign subsidiaries are translated into U.S. dollars using the exchange rate on the balance sheet date. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are recorded as a separate component on the consolidated statements of comprehensive loss. Equity transactions are translated using historical exchange rates. Expenses are translated using the average exchange rate during the year. Foreign currency transaction gains and losses are included in interest and other (expense) income, net in the Company’s consolidated statements of operations. The Company incurred $(0.4) million, $(0.3) million, and less than $(0.1) million in foreign currency transaction gains (losses) for the years ended January 31, 2021, 2020, and 2019, respectively. Cash and Cash Equivalents The Company’s cash and cash equivalents consist primarily of cash deposits and money market funds. The Company considers all highly liquid investments purchased with maturities of three months or less at the date of purchase to be cash equivalents. Property and Equipment, Net Property and equipment are stated at cost less accumulated depreciation. Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Costs of maintenance and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. Upon retirement or sale, the cost and related accumulated depreciation and amortization are removed from the Company’s consolidated balance sheet and the resulting gain or loss is reflected in the Company’s consolidated statement of operations. The following table presents the estimated useful lives of the Company’s property and equipment: Useful Life Computer and hardware equipment 3 years Furniture and fixtures 5 years Leasehold improvements Shorter of lease term or estimated useful life Capitalized internal-use software 3 years In accordance with its policy, the Company reviewed the estimated useful lives of its fixed assets and determined the actual lives of furniture and fixtures were longer than the estimated useful lives used for depreciation purposes in the Company’s financial statements. In the fourth quarter of fiscal 2021, the Company changed the estimated useful lives of its furniture and fixtures from three years to five years to better reflect the estimated periods during which these assets will remain in service. The effect of this change had an immaterial impact on the Company’s consolidated financial statements. Capitalized Internal-Use Software Costs The Company capitalizes certain costs related to its enterprise cloud computing services and certain projects for internal use incurred during the application development stage. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. Internal-use software is amortized on a straight-line basis over its estimated useful life. The Company capitalized $1.5 million and $6.1 million of internal-use software costs during the years ended January 31, 2021 and 2020, respectively. Amortization of internal-use software costs included in cost of revenue in the consolidated statements of operations was $0.7 million, $0.9 million, and $1.3 million for the years ended January 31, 2021, 2020, and 2019, respectively. Fully amortized capitalized internal-use software was written off in the amount of $8.0 million during the year ended January 31, 2021. As of January 31, 2021 and 2020, the Company included capitalized internal-use software costs of $1.7 million and $0.9 million within property and equipment, net, respectively. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. During the year ended January 31, 2020, the Company recorded impairment charges of $6.7 million for certain previously capitalized internal-use software. Refer to Note 4 for further information on the impairment charge recorded during the year ended January 31, 2020. There were no impairments to capitalized internal-use software costs during the year ended January 31, 2021 or 2019. Goodwill and Other Acquired Intangible Assets Goodwill represents the excess of the purchase price over the fair value of net assets acquired in connection with business combinations accounted for using the acquisition method of accounting. The Company has one reporting unit and performs such testing of goodwill in the fourth quarter of each year, or as events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. These triggering events that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of goodwill or a significant decrease in expected cash flows. The Company’s test for goodwill impairment starts with a qualitative assessment to determine whether it is necessary to perform the quantitative goodwill impairment test. If the Company determines, based on the qualitative factors, that the fair value of the reporting unit is more likely than not less than the carrying amount, then a quantitative goodwill impairment test is required. There was no impairment of goodwill recorded for the years ended January 31, 2021, 2020, or 2019. Intangible assets consist of identifiable intangible assets, primarily developed technology, resulting from the Company’s acquisitions. Acquired intangible assets are recorded at cost, net of accumulated amortization. Intangible assets are amortized on a straight-line basis over their estimated useful lives. Amortization costs are included in cost of revenue within the consolidated statements of operations. Long-lived assets, including intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. There was no impairment of intangible assets recorded for the years ended January 31, 2021, 2020, or 2019. Business Combinations The Company accounts for its acquisitions using the acquisition method of accounting. The Company allocates the fair value of purchase consideration to the tangible assets acquired, liabilities assumed, and intangible assets acquired, based on their estimated fair values. The excess of the fair value of purchase consideration over the values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair value of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain identifiable assets include, but are not limited to, reproduction costs, expected long-term market growth, future expected operating expenses, cost build-up to support obligations, and appropriate discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. Acquisition costs, such as legal and consulting fees, are expensed as incurred. During the measurement period, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded in the consolidated statement of operations. See Note 5 for additional information regarding the Company’s acquisitions. Deferred Rent The Company leases real estate facilities under operating leases. For leases that contain rent escalation or rent concession provisions, the Company records the total rent expense during the lease term on a straight-line basis over the term of the lease. The Company records the difference between the rent paid and the straight-line rent expense as a deferred rent liability within accrued expenses and other current liabilities and other liabilities on the accompanying consolidated balance sheets. Cost of Revenue Cost of revenue includes all direct costs to deliver and support the Company’s platform, including personnel and related costs, third-party hosting fees related to the Company’s cloud platform, amortization of internal-use software and acquired developed technology, as well as allocated facilities and IT costs. These costs are expensed as incurred. Research and Development Expense The Company’s costs related to research, design, maintenance, and minor enhancements of the Company’s platform are expensed as incurred. These costs consist primarily of personnel and related expenses, including allocated overhead costs, contractor and consulting fees related to the design, development, testing, and enhancements of the Company’s platform, and software, hardware, and cloud infrastructure fees for staging and development related to research and development activities necessary to support growth in the Company’s employee base and in the adoption of its platform. Advertising and Promotion Costs Costs related to advertising and promotions of the Company’s service offerings are charged to sales and marketing expense as incurred. The Company incurred $7.2 million, $9.5 million, and $5.8 million in advertising and promotion expenses for the years ended January 31, 2021, 2020, and 2019, respectively. Stock-Based Compensation The Company measures and recognizes compensation expense for all stock-based payment awards granted to employees, directors, and non-employees based on the estimated fair values on the date of the grant. The fair value of options granted and purchase rights granted under the Employee Stock Purchase Plan (“ESPP”) is estimated on the grant date using the Black-Scholes option pricing model. The fair value of Restricted Stock Units (“RSUs”) is estimated on the date of grant based on the fair value of the Company’s underlying common stock. Prior to the Company’s IPO, the fair value of the Company’s common stock for financial reporting purposes was determined considering objective and subjective factors, including valuations from third-party valuation experts, and required judgment to determine the fair value of common stock for financial reporting purposes as of the date of each equity grant or modification. The Company recognizes stock-based compen sation expense for service-based awards and our ESPP purchase rights on a straight-line basis over the service period, net of actual forfeitures. The Company also has certain options and RSUs that have performance-based vesting conditions; stock-based compensation expense for such awards is recognized using an accelerated attribution method from the time the vesting condition is probable through the time the vesting condition has been achieved. Prior to the Company’s IPO, the Company recognized stock-based compensation expense for RSUs on an accelerated attribution method as the RSUs were subject to service-based and performance-based vesting conditions, which included a liquidity event condition, and in certain cases, the achievement of certain other performance metrics. None of the RSUs would vest unless the liquidity event condition was satisfied. Upon the completion of the IPO, the liquidity event condition was considered probable and the Company recognized cumulative stock-based compensation expense using the accelerated attribution method related to RSUs that had vested as of the IPO. The remaining unrecognized stock-based compensation expense related to the RSUs will be recognized over the remaining requisite service period. All RSUs granted after the IPO, under the 2020 Equity Incentive Plan (the “2020 Plan”) will not be subject to a liquidity event condition and will be recognized on a straight-line basis over the service period. Income Taxes The Company records income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s consolidated financial statements or income tax returns. The Company recognizes deferred tax assets to the extent that the Company believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize deferred tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company operates in various tax jurisdictions and is subject to audit by various tax authorities. The Company provides for tax contingencies whenever it is deemed more likely than not that a tax asset has been impaired, or a tax liability has been incurred for events such as tax claims or changes in tax laws. Tax contingencies are based upon their technical merits, applicable tax law, and the specific facts and circumstances as of each reporting period. Changes in facts and circumstances could result in material changes to the amounts recorded for such tax contingencies. The Company records uncertain tax positions on the basis of a two-step process whereby (1) a determination is made as to whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position, and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is greater than 50% likely to be realized upon ultimate settlement with the related tax authority. Other Comprehensive Income (Loss) Other comprehensive income (loss) includes amounts recorded in equity that are not the result of transactions with stockholders. The changes in other comprehensive income (loss) are a result of translation gains and losses for the Company’s foreign subsidiaries assets, liabilities, revenue, and expenses. The Company recorded foreign currency translation gains (losses) of $0.2 million, $(0.1) million, and $(0.2) million for the years ended January 31, 2021, 2020, and 2019, respectively. Net Loss per Share Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period, less any shares subject to repurchase. Diluted net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period giving effect to all potentially dilutive securities to the extent they are dilutive. Basic and diluted net loss attributable to common stockholders per share is presented in conformity with the two-class method required for participating securities as the redeemable convertible preferred stock is considered a participating security because it participates in dividends with common stock. The Company also considers the shares issued upon the early exercise of stock options subject to repurchase to be participating securities, because holders of such shares have non-forfeitable dividend rights in the event a dividend is paid on common stock. In addition, shares that are contingently issuable are excluded from the computation of basic earnings per share. Because the Company has reported a net loss for all periods presented, diluted net loss per common share is the same as basic net loss per common share for those periods. Related Party Transactions Certain members of the Company’s Board of Directors serve as directors of, or are executive officers of, and in some cases are investors in, companies that are customers or vendors of the Company. The Company received cash payments of $1.5 million from a related party for the year ended January 31, 2021. Related party transactions were not material for the years ended January 31, 2020 or 2019. Recently Adopted Accounting Pronouncements The Company assesses the adoption impacts of recently issued accounting pronouncements by the Financial Accounting Standards Board (“FASB”) on its consolidated financial statements. The sections below describe impacts from newly adopted pronouncements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350)—Simplifying the Test for Goodwill Impairment, which simplifies the required methodology to calculate an impairment charge for goodwill. The Company adopted this guidance as of February 1, 2020, and the adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718) Improvements to Nonemployee Share-Based Payment Accounting . The amendments in the updated guidance expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The Company adopted this guidance as of February 1, 2020, and the adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) , which modifies the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures for certain investments. The Company adopted this guidance as of February 1, 2020, and the adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40) , which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The Company adopted this guidance, on a prospective basis, as of February 1, 2020, and the adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) . The amendments in the updated guidance simplify the accounting for income taxes by removing certain exceptions and improving consistent application of other areas of the topic by clarifying the guidance. The Company adopted this guidance, on a prospective basis, as of February 1, 2020, and the adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements Under the JOBS Act, the Company meets the definition of an emerging growth company and can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company measures its financial assets and liabilities at fair value each reporting period using a fair value hierarchy that prioritizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value, as follows: Level 1 Observable inputs, such as quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company uses the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The carrying amounts of the Company’s financial instruments, which include cash equivalents, accounts receivable, accounts payable, and accrued expenses, approximate fair value because of the short maturity of those instruments. The following tables present the fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis, based on the three-tier fair value hierarchy (in thousands): As of January 31, 2021 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 397,200 $ — $ — $ 397,200 As of January 31, 2020 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 98,469 $ — $ — $ 98,469 Liabilities: Redeemable convertible preferred stock warrant liability $ — $ — $ 270 $ 270 Level 3 financial liabilities consisted of the redeemable convertible preferred stock warrant liability. In connection with the Loan and Security agreement discussed in Note 6, the Company issued 32,276 warrants to purchase shares of the Company’s redeemable convertible preferred stock. The Company used a Black-Scholes option valuation model to value its redeemable convertible preferred stock warrant liability at inception and on subsequent valuation dates. Changes in the fair values of the redeemable convertible preferred stock warrant liability were recorded as interest and other (expense) income, net in the Company’s consolidated statements of operations. All 32,276 warrants to purchase shares of redeemable convertible preferred stock converted into warrants to purchase common stock upon the closing of the Company’s IPO and the related liability was reclassified to additional-paid in capital in the Company’s consolidated balance sheet. During the years ended January 31, 2021 and 2020, there were no transfers in or out of Level 3 from other levels in the fair value hierarchy. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Jan. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Components | Balance Sheet Components Property and Equipment, Net Property and equipment, net, consisted of the following (in thousands): January 31, January 31, Computer and hardware equipment $ 2,206 $ 1,954 Furniture and fixtures 1,773 1,129 Leasehold improvements 2,416 2,120 Capitalized internal-use software 3,386 9,823 Gross property and equipment (a) 9,781 15,026 Accumulated depreciation and amortization (5,625) (12,033) Property and equipment, net $ 4,156 $ 2,993 ______________ (a) Gross property and equipment includes construction-in-progress of $0.6 million and less than $0.1 million that had not yet been placed in services as of January 31, 2021 and January 31, 2020, respectively. The costs associated with construction-in-progress are not amortized until placed in service. Depreciation and amortization expense of property and equipment was $1.5 million, $1.7 million, and $1.7 million for the years ended January 31, 2021, 2020, and 2019, respectively. The following table presents the Company’s long-lived assets by geographic region for the periods indicated (in thousands): January 31, January 31, United States $ 3,381 $ 1,970 International 775 1,023 Total long-lived assets $ 4,156 $ 2,993 During the year ended January 31, 2020, the Company recorded impairment charges of $6.7 million for certain previously capitalized internal-use software. The Company determined that certain internal-use software that was previously being developed would no longer be integrated with the Company’s platform due to a change in product strategy after the acquisition of Jask Labs Inc. (“Jask Labs”) and, therefore, would no longer be placed into service. The charge reduced the carrying value of the internal-use software to zero and has been reflected in the Company’s consolidated statement of operations. Fully amortized capitalized internal-use software was written off in the amount of $8.0 million during the year ended January 31, 2021. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): January 31, January 31, Accrued compensation $ 12,627 $ 6,262 Accrued sales commissions 3,823 5,310 Accrued taxes 1,382 1,773 Accrued professional services 256 1,308 Accrued other expenses 5,228 5,718 Accrued expenses and other current liabilities $ 23,316 $ 20,371 |
Acquisitions and Intangible Ass
Acquisitions and Intangible Assets | 12 Months Ended |
Jan. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions and Intangible Assets | Acquisitions and Intangible Assets Jask Labs Inc. On October 20, 2019, the Company executed a merger agreement to acquire the assets and liabilities of Jask Labs Inc. (“Jask Labs”), a privately-held software company that offers a cloud-native autonomous security operations center solution. The acquisition closed on October 25, 2019. The Company acquired Jask Labs primarily for its team and their platform, which includes their security analytics solution to deliver an integrated, cloud-native intelligence solution. The aggregate purchase consideration was $55.1 million, of which $11.2 million was paid in cash, $43.3 million was comprised of 3,573,659 shares of common stock, and $0.6 million was comprised of assumed options to purchase 265,075 shares of common stock. The value of consideration assigned to the common stock paid was based on the fair value of the Company’s common stock on the date of acquisition. Of the consideration transferred, $0.9 million in cash and 543,095 shares of common stock for $6.6 million was placed in an indemnity escrow fund to be held for 15 months after the acquisition date for general representations and warranties. At closing, certain Jask Labs stockholders had not completed administrative forms that were required for the Company’s common stock to be legally issued. Thus, the shares were issued once the administrative forms were completed. The Company has included the total fair value of the consideration for shares legally issued and legally issuable within additional-paid-in capital and common stock. As of January 31, 2021, all administrative forms were completed and all shares were legally issued and outstanding. The acquisition was accounted for as a business combination, and the total purchase price was allocated to the net tangible and intangible assets and liabilities acquired based on their respective fair values on the acquisition date and the excess was recorded as goodwill. Certain stock options held by Jask Labs employees were assumed by the Company with a total fair value of $1.7 million, of which $0.6 million was attributed to pre-combination services and was included in consideration transferred and $1.1 million was allocated to post-combination services and will be recognized as stock-based compensation over the remaining service period. See Note 9 for more details on the Jask Labs options assumed. The assets acquired and liabilities assumed in connection with the acquisition were recorded at their fair value on the date of acquisition as follows (in thousands): Amount Cash $ 782 Restricted cash 300 Accounts receivable 503 Prepaid expenses and other assets 659 Fixed assets 367 Intangible assets 17,500 Goodwill 41,368 Accounts payable (1,760) Deferred revenue, current (2,358) Accrued and other current liabilities (1,609) Deferred revenue, noncurrent (354) Other liabilities (291) Total acquisition consideration $ 55,107 Subsequent to the acquisition, the Company recorded a $0.3 million tax benefit related to on the release of the valuation allowance on its net deferred tax assets. Intangible assets acquired are comprised of developed technology with an estimated useful life of 3 years. The fair value assigned to the developed technology was determined using the reproduction cost approach, which estimates the cost to reproduce the asset. Goodwill represents the future economic benefits arising from other assets that could not be individually identified and separately recognized, such as the acquired assembled workforce of Jask Labs. In addition, goodwill represents the future benefits as a result of the acquisition that will enhance the Company’s product available to both new and existing customers and increase the Company’s competitive position. The goodwill is not deductible for tax purposes. In connection with the acquisition, the Company granted 130,180 shares of restricted common stock, with a fair value of $12.11683 per share at the time of grant, that vest over a period of two years. During the years ended January 31, 2021 and 2020, the Company recorded $0.8 million and $0.2 million, respectively, in stock-based compensation expense related to the vesting of the restricted common stock. As of January 31, 2021 and 2020, the remaining unrecognized stock-based compensation expense of $0.6 million and $1.4 million, respectively, will be recognized over the remaining vesting period. The Company incurred acquisition-related expenses of $2.6 million, which were recorded as general and administrative expenses in the consolidated statement of operations during the year ended January 31, 2020. The Company paid $0.8 million in acquisition-related expenses incurred by Jask Labs related to Jask Labs’ advisors which was included as part of the purchase consideration. The results of operations of Jask Labs are included in the accompanying consolidated statements of operations from the date of acquisition. Jask Labs’ results of operations since the date of acquisition were not material to the Company’s consolidated results. Pro Forma Financial Information The following pro forma information gives effect to the acquisition of Jask Labs as if it had been completed on February 1, 2017 (the beginning of the comparable prior reporting period), including pro forma adjustments primarily related to amortization of acquired intangible assets, reduction in revenue related to the fair value of deferred revenue, stock-based compensation, tax benefit from release of the valuation allowance, and the inclusion of acquisition-related expenses reflected in the revenue and net loss figures below at the earliest period presented. The pro forma results have been prepared based on estimates and assumptions, which the Company believes are reasonable; however, they are not necessarily indicative of the consolidated results of operations had the acquisition occurred on February 1, 2017, or of future results of operations (in thousands): Year Ended January 31, 2020 2019 Revenues $ 157,428 $ 104,657 Net loss $ (114,951) $ (85,597) Pro forma revenues and net loss reflect nonrecurring adjustments for acquisition-related expenses of $3.4 million, a tax benefit of $0.3 million for the release of the valuation allowance, and accelerated stock-based compensation of $0.1 million that resulted from the acquisition. Other Acquisitions During the year ended January 31, 2020, the Company completed other business combinations and asset acquisitions for total consideration of $9.7 million (including 334,246 shares of the Company’s common stock), of which $8.4 million was attributed to goodwill and $1.3 million was attributed to intangible assets. The intangible assets acquired in the business combinations and asset acquisitions were comprised of developed technology with an estimated weighted average useful life of 1.5 years. The Company incurred $0.4 million in acquisition-related expenses which were recorded as general and administrative expenses in the consolidated statement of operations. These acquisitions generally enhance the breadth and depth of certain of the Company’s product offerings. Goodwill from business combinations was not deductible for income tax purposes. Pro forma and historical post-acquisition results of operations for these acquisitions were not material to the Company’s consolidated statement of operations. Acquired Intangible Assets Intangible assets as of January 31, 2021 and 2020 consisted of developed technology with acquisition-date fair values of $20.1 million. As of January 31, 2021 and 2020, the accumulated amortization of the developed technology was $9.4 million and $2.7 million, respectively. As of January 31, 2021 and 2020, the weighted-average remaining useful life of the developed technology was 1.8 years and 2.7 years, respectively. The Company recorded $6.8 million, $2.6 million, and $0.3 million of amortization expense during the years ended January 31, 2021, 2020, and 2019, respectively. As of January 31, 2021, future amortization expense related to acquired developed technology was as follows (in thousands): Amortization Expense 2022 $ 6,146 2023 4,510 Total amortization expense $ 10,656 As of January 31, 2020, future amortization expense related to acquired developed technology was as follows (in thousands): Amortization Expense 2021 $ 6,759 2022 6,146 2023 4,510 Total amortization expense $ 17,415 |
Debt
Debt | 12 Months Ended |
Jan. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt On January 31, 2016, the Company entered into a Loan and Security Agreement (the “Agreement”) with Silicon Valley Bank. The Agreement provides for a revolving line of credit facility, which was amended in July 2019 to extend it to July 31, 2021. In June 2020, the Company amended the Agreement to extend its maturity to June 2022. Under the amended Agreement, the Company can borrow up to $50 million. Interest on any drawdown accrues at the greater of the prime rate plus a spread of 0.75% or 5.25%. Pursuant to the amended Agreement, the Company is required to maintain a minimum adjusted quick ratio of 1.25 to 1.00. If the Company’s adjusted quick ratio is greater than or equal to 1.75 to 1.00, interest on any drawdown will accrue at the greater of the prime rate plus a spread of 0.25% or 4.75%. The Agreement is secured by substantially all of the Company’s assets. The Agreement includes restrictive covenants, in each case subject to certain exceptions, that limit the Company’s ability to: sell or otherwise dispose of the Company’s business or property; change its business, liquidate or dissolve or undergo a change in control; enter into mergers, consolidations, and acquisitions; incur indebtedness; create liens; pay dividends or make distributions; make investments; enter into material transactions with affiliates; pay any subordinated debt or amend certain terms thereof; or become an investment company. The Agreement also contains customary events of default, upon which Silicon Valley Bank may declare all or a portion of the Company’s outstanding obligations payable to be immediately due and payable. During the year ended January 31, 2021, the Company borrowed $24.3 million under its revolving line of credit facility with Silicon Valley Bank and repaid the outstanding balance under this facility during the third quarter of its fiscal 2021. The Company did not have any balance outstanding under this facility as of January 31, 2021 and 2020. The Company was in compliance with the financial covenants associated with the amended Agreement as of January 31, 2021. |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Jan. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases The Company leases office space globally under non-cancelable operating lease agreements that expire at various dates through fiscal 2026. As of January 31, 2021, future annual minimum lease payments under non-cancelable operating leases were as follows (in thousands): Minimum 2022 $ 5,320 2023 4,725 2024 1,898 2025 350 2026 55 Total future minimum lease payments $ 12,348 Rent expense was $4.2 million, $3.2 million, and $2.4 million for the years ended January 31, 2021, 2020, and 2019, respectively. Other Obligations As of January 31, 2021, the Company had future minimum commitments for hosting and other non-cancelable obligations as follows (in thousands): Minimum 2022 $ 61,451 2023 60,000 2024 70,000 Total future minimum commitments $ 191,451 Indemnifications In the ordinary course of business, the Company includes standard indemnification provisions in most of its SaaS revenue arrangements with its customers. Pursuant to these provisions, the Company indemnifies these parties for losses suffered or incurred in connection with its service, breach of representations or covenants, intellectual property infringement, or other claims made against certain parties. These provisions may limit the time within which an indemnification claim can be made but are generally perpetual any time after execution of the agreement. The maximum amount of potential future indemnification is generally unlimited. It is not possible to estimate the maximum potential amount under these indemnification agreements due to limited history of prior indemnification claims and the unique facts and circumstances involved in each agreement, and the Company does not believe a loss contingency is probable. The Company has not incurred significant expense defending its licensees against third-party claims, nor has it ever incurred significant expense under its standard service warranties. Accordingly, the Company has no liabilities recorded for potential claims under these agreements as of January 31, 2021 or 2020. The Company has also agreed to indemnify its directors and executive officers for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by any of these persons in any action or proceeding to which any of those persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by the Company, arising out of that person’s services as the Company’s director or officer or that person’s services provided to any other company or enterprise at the Company’s request. The Company maintains director and officer insurance coverage that would generally enable the Company to recover a portion of any future amounts paid. The Company may also be subject to indemnification obligations by law with respect to the actions of its employees under certain circumstances and in certain jurisdictions. No liabilities have been recorded associated with these indemnification provisions as of January 31, 2021 or 2020. Litigation and Other Matters From time to time, the Company may be a party to various legal matters, threatened claims, or proceedings in the normal course of business. Legal fees and other costs associated with such actions are expensed as incurred. The Company assesses, in conjunction with its legal counsel, the need to record a liability for litigation and contingencies. Legal accruals are recorded when and if it is determined that a loss related to a certain matter is both probable and reasonably estimable. Attorneys representing a purported class of current and former employees in various sales roles alleged potential claims of employee misclassification and related federal and state law claims, which the Company disputed. In response, the Company mediated the dispute, and in August 2020, the Company entered into a settlement agreement with the purported class counsel to resolve the dispute, which is being handled in arbitration and will result in the Company paying $4.5 million to resolve the class-wide claims, subject to final approval by the arbitrator. As of January 31, 2021, the Company had recorded $4.5 million related to these claims within accrued expenses and other current liabilities on the consolidated balance sheet. |
Revenue
Revenue | 12 Months Ended |
Jan. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenue The following table presents the Company’s revenue by geographic region, based on the billing address of the customer, for the periods indicated (in thousands): Year Ended January 31, 2021 2020 2019 United States $ 171,142 $ 130,713 $ 87,043 International 31,495 24,343 16,599 Total revenue $ 202,637 $ 155,056 $ 103,642 No individual foreign country contributed 10% or more of revenue for the years ended January 31, 2021, 2020, or 2019. No customer individually accounted for 10% or more of the Company’s revenues for the years ended January 31, 2021, 2020, and 2019. Deferred Revenue and Remaining Performance Obligations The Company recognized revenue of $85.9 million and $60.8 million during the years ended January 31, 2021 and 2020, respectively, that was included in the deferred revenue balance at the beginning of the respective periods. |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) and Equity Incentive Plans | 12 Months Ended |
Jan. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity (Deficit) and Equity Incentive Plans | Stockholders’ Equity (Deficit) and Equity Incentive Plans Redeemable Convertible Preferred Stock Upon the closing of the Company’s IPO, all 63,761,950 shares of redeemable convertible preferred stock were automatically converted into shares of common stock on a one-to-one basis, and the carrying value of $340.2 million was reclassified into common stock and additional paid-in-capital. As of January 31, 2021, there were no shares of redeemable convertible preferred stock issued and outstanding. Common Stock The Company’s Amended and Restated Certificate of Incorporation authorized the Company to issue 1,000.0 million and 122.0 million shares of common stock at a par value of $0.0001 as of January 31, 2021 and 2020, respectively. As of January 31, 2021 and January 31, 2020, approximately 102.5 million and 19.0 million shares of common stock were issued and outstanding, respectively. Each share of common stock is entitled to one vote. The holders of common stock are also entitled to receive dividends whenever funds are legally available and when and if declared by the board of directors, subject to the prior rights of holders of all classes of stock outstanding. As of January 31, 2021 and 2020, no dividends had been declared. The Company has reserved shares of its common stock as follows (in thousands): January 31, January 31, Redeemable convertible preferred stock — 63,762 Warrants 32 32 Stock options outstanding 24,768 27,841 RSUs outstanding 3,757 — Future issuance under equity incentive plans 12,978 3,071 Future issuance in connection with Jask Labs acquisition — 256 Future issuance in connection with assumed options for Jask Labs acquisition — 234 Shares available subject to the 2020 ESPP Plan 2,000 — Total reserved shares 43,535 95,196 Stock Plans The Company has two equity incentive plans: the 2010 Stock Plan (the “2010 Plan”) and the 2020 Plan. In connection with the Company’s IPO in September 2020, the 2010 Plan was terminated and replaced by the 2020 Plan and all shares that remained available for issuance under the 2010 Plan at that time were reserved for issuance under the 2020 Plan. The number of shares of common stock available for issuance under the 2020 Plan will be increased by any shares of common stock subject to awards outstanding under the 2010 Plan that expire or otherwise terminate without having been exercised or issued in full, are tendered to or withheld by the Company for payment of an exercise price or for satisfying tax withholding obligations, or are forfeited to or repurchased by the Company due to failure to vest . The Company has issued stock options and RSUs to employees, directors, consultants, and advisors pursuant to the both the 2010 Plan and 2020 Plan. Employee stock options are granted with an exercise price no less than the fair value of the underlying common stock on the grant date, in general vest based on continuous service over four years, and expire 10 years from the date of grant. The value of RSUs is measured based on the grant date fair value of the awards and in general vest based on satisfying both a service-based condition based on continuous service over four years and a liquidity event condition. As of January 31, 2021, there were 13.0 million shares available for grant under the 2020 Plan. The 2020 Plan provides that the number of shares reserved will automatically increase on the first day of each fiscal year, beginning on February 1, 2021, by an amount equal to the least of (i) 12,500,000 shares, (ii) 5% of the outstanding shares of our common stock on the last day of the immediately preceding fiscal year, or (iii) such other amount as the administrator of the 2020 Plan may determine. Stock Options The Company records stock-based compensation expense for stock options based on the estimated fair value of the options on the date of the grant using the Black-Scholes option-pricing model with the assumptions included in the table below. The expected term represents the period that the Company’s stock-based awards are expected to be outstanding. The expected term assumptions were determined based on the vesting terms, exercise terms, and contractual lives of the options. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the estimated option life. The expected stock price volatility is based upon comparable public company data. The Company does not currently pay dividends. The fair value of each stock option was estimated on the date of grant using the following assumptions during the period: Year Ended January 31, 2021 2020 2019 Expected term (in years) 5.7 - 6.1 5.0 - 7.3 5.5 - 6.7 Risk-free interest rate 0.4% - 0.9% 1.6% - 2.5% 2.5% - 3.0% Expected volatility 52.5% - 55.2% 49.7% - 52.5% 46.6% - 53.1% Expected dividend yield — — — Assumptions used in valuing non-employee stock options are generally consistent with those used for employee stock options with the exception that the expected term is over the contractual life, or 10 years. The following table is a summary of option activity during the year ended January 31, 2021: Number of Weighted Weighted Aggregate (in thousands) (years) (in thousands) Balance at January 31, 2020 27,841 $ 3.72 7.7 $ 233,918 Options granted 1,662 $ 12.33 Options exercised (2,409) $ 2.84 Options cancelled (2,326) $ 5.99 Balance at January 31, 2021 24,768 $ 4.16 6.7 $ 749,111 Options exercisable at January 31, 2021 16,816 $ 2.86 6.0 $ 530,504 Stock options granted during the years ended January 31, 2021, 2020, and 2019 had a weighted-average grant-date fair value of $6.31, $5.51, and $1.76 per share, respectively. The aggregate intrinsic value of options exercised during the years ended January 31, 2021, 2020, and 2019 was $31.1 million, $12.0 million, and $2.6 million, respectively. No income tax benefits have been recognized for stock-based compensation arrangements. As of January 31, 2021 and 2020, there was $35.6 million and $52.0 million, respectively, of total unrecognized compensation expense related to unvested employee and non-employee stock options that is expected to be recognized over a weighted-average period of 2.4 years and 3.1 years, respectively. Early Exercise of Employee Options At the discretion of the Company’s board of directors, certain stock options may be exercisable immediately at the date of grant, but are subject to a repurchase right under which the Company may buy back any unvested shares at their original exercise price in the event of an employee’s termination prior to full vesting. The consideration received for an exercise of an unvested option is considered to be a deposit of the exercise price and the related dollar amount is recorded as a liability. The liabilities are reclassified into equity as the awards vest. As of January 31, 2021 and 2020, the Company had a liability of $0.2 million and $0.4 million, respectively, for 75,250 and 139,750 shares of common stock that were unvested and early exercised by employees as of January 31, 2021 and 2020, respectively. Restricted Stock Units The following table is a summary of RSU activity for the year ended January 31, 2021: Number of Shares Weighted (in thousands) RSUs outstanding at February 1, 2020 — Granted 3,882 $ 14.99 Forfeited (125) $ 12.59 RSUs outstanding at January 31, 2021 3,757 $ 15.07 RSUs expected to vest at January 31, 2021 3,757 $ 15.07 As of January 31, 2021, there was $35.8 million of total unrecognized compensation expense related to unvested employee and director RSUs, of which $0.3 million is for the RSUs subject to certain other performance metrics. Total unrecognized compensation expense related to unvested RSUs is expected to be recognized over a weighted-average period of 2.5 years. Jask Labs’ Plans In connection with the acquisition of Jask Labs, the Company assumed 265,075 options to purchase shares of common stock, granted under the Jask Labs 2015 Stock Option and Grant Plan and the Jask Labs 2018 Equity Incentive Plan (together, the “Jask Plans”), at a weighted-average exercise price of $9.86 per share and weighted-average fair value of $6.39 per share, of which 140,348 and 233,852 remained outstanding as of January 31, 2021 and 2020, respectively. As of January 31, 2021 and 2020, 106,510 and 124,184 options were vested and exercisable with a weighted-average exercise price of $9.93 and $9.21, and the total unrecognized compensation expense related to these awards was $0.2 million and $0.6 million, respectively. During the year ended January 31, 2021 52,262 options were exercised. Employee Stock Purchase Plan In September 2020, the board of directors adopted and the stockholders of the Company approved the 2020 ESPP, which became effective on September 17, 2020. The ESPP initially reserved and authorized the issuance of up to a total of 2,000,000 shares of common stock to participating employees. The number of shares reserved under the ESPP will automatically increase on the first day of each fiscal year, starting on February 1, 2021, in an amount equal to the least of (i) 2,500,000 shares, (ii) 1% of the outstanding shares of our common stock on the last day of the immediately preceding fiscal year, or (iii) such other amount as the administrator of the ESPP may determine. The ESPP generally provides for 24-month offering periods beginning June 15 and December 15 of each year, with each offering period consisting of four six-month purchase periods, except for the initial offering period which began on September 17, 2020, and will end on December 15, 2022 and the second offering period will begin on June 15, 2021. On each purchase date, eligible employees will purchase the shares at a price per share equal to 85% of the lesser of (1) the fair market value of the Company’s common stock as of the beginning of the offering period or (2) the fair market value of the Company’s common stock on the purchase date, as defined in the ESPP. The Company recognized stock-based compensation expense related to the ESPP of $1.3 million during the year ended January 31, 2021. As of January 31, 2021, $2.5 million has been withheld on behalf of employees for a future purchase under the ESPP due to the timing of payroll deductions. As of January 31, 2021, there was $7.1 million of unrecognized stock-based compensation expense related to the ESPP that is expected to be recognized over an average vesting period of 1.2 years. There were no purchases for the year ended January 31, 2021 related to the ESPP. The following table summarizes the assumptions used in the Black-Scholes option-pricing model to determine the fair value of the ESPP purchase rights: Year Ended January 31, 2021 Expected term (in years) 0.7 - 2.2 Risk-free interest rate 0.11% - 0.14% Expected volatility 55.4% - 65.5% Expected dividend yield — Stock-Based Compensation Expense The following table presents total stock-based compensation expense included in the consolidated statements of operations for the years ended January 31, 2021, 2020, and 2019 (in thousands): Year Ended January 31, 2021 2020 2019 Cost of revenue $ 510 $ 179 $ 52 Research and development (a) 13,728 5,940 1,609 Sales and marketing 11,532 5,791 1,856 General and administrative (b) 15,181 10,124 3,060 Total stock-based compensation expense $ 40,951 $ 22,034 $ 6,577 ________________ (a) During the years ended January 31, 2021, 2020, and 2019, the Company capitalized stock-based compensation of $0.3 million, $0.5 million, and $0.1 million, respectively, related to internal-use software development costs. The research and development stock-based compensation amounts are presented net of the capitalized costs. (b) During the year ended January 31, 2020, the Company’s board of directors approved modifications to immediately vest 172,708 options that had been granted previously, resulting in additional stock-based compensation expense of $1.6 million, which was recorded to general and administrative expenses during the year ended January 31, 2020. During the year ended January 31, 2020, the Company granted 280,316 options to certain executives that were subject to both service-based vesting conditions and performance-based vesting conditions. As the performance-based vesting conditions were not met, no stock-based compensation was recognized on these options for the year ended January 31, 2020. During the year ended January 31, 2021, these options were cancelled. The RSUs granted under the 2010 Plan were subject to service-based and performance-based vesting conditions, which included a liquidity event condition. In certain cases the RSUs are also subject to certain other performance metrics. The liquidity event performance-based vesting condition was deemed probable of occurring up on the completion of the IPO. On that date the Company recorded cumulative stock-based compensation expense of $10.9 million using the accelerated attribution method. The remaining unrecognized stock-based compensation expense will be recorded over the RSUs remaining requisite service periods. Included within these amounts was $1.4 million for the RSUs subject to both the occurrence of a liquidity event and certain other performance metrics. Common Stock Transfers During the years ended January 31, 2021, 2020, and 2019 certain of the Company’s existing investors acquired outstanding common stock from former employees of the Company, for a purchase price greater than the fair value of the common stock at the time of the transaction. In connection with these stock transfers, the Company waived its right of first refusal and other transfer restrictions applicable to such shares. As a result, the Company recorded $0.3 million, $1.4 million, and $1.7 million as stock-based compensation for the years ended January 31, 2021, 2020, and 2019 in general and administrative expenses in the consolidated statements of operations, respectively. The amount recorded as stock-based compensation represents the difference between the price paid and the estimated fair value at the date of the transaction. During the year ended January 31, 2020, the Company facilitated a tender offer whereby certain existing investors commenced a tender offer to purchase shares of the Company’s common stock from certain employees and former employees of the Company, for $12.11683 per share, in cash. An aggregate of 1,686,446 shares of the Company’s common stock were tendered pursuant to the tender offer. During the year ended January 31, 2020, the Company recorded a total of $4.8 million as stock-based compensation related to the tender offer, comprised of $2.6 million in general and administrative expenses, $1.5 million in research and development expenses, |
401(k) Plan
401(k) Plan | 12 Months Ended |
Jan. 31, 2021 | |
Retirement Benefits [Abstract] | |
401(k) Plan | 401(k) Plan In November 2011, the Company adopted a 401(k) Plan that qualifies as a deferred salary arrangement under Section 401 of the Internal Revenue Code. Under the 401(k) Plan, participating employees may defer a portion of their pretax earnings not to exceed the maximum amount allowable. The Company has not made any matching contributions as of January 31, 2021 or 2020. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s loss before income taxes consisted of the following (in thousands): Year Ended January 31 2021 2020 2019 United States $ (82,850) $ (95,884) $ (49,516) International 4,069 4,648 2,334 Total $ (78,781) $ (91,236) $ (47,182) The components of the provision for income taxes are as follows (in thousands): Year Ended January 31, 2021 2020 2019 Current: Federal $ — $ — $ — State 201 (5) 41 Foreign 1,081 571 340 Total current tax expense $ 1,282 $ 566 $ 381 Deferred: Federal $ — $ (291) $ — State — — — Foreign 234 626 226 Total deferred tax expense $ 234 $ 335 $ 226 Total tax expense $ 1,516 $ 901 $ 607 A reconciliation of the Company’s effective income tax rate to the expected income tax rate, computed by applying the federal statutory income tax rate of 21.0% for each of the years ended January 31, 2021, 2020, and 2019, to the Company’s loss before provision for income taxes, is as follows: Year Ended January 31 2021 2020 2019 Federal tax statutory rate 21.0 % 21.0 % 21.0 % State tax, net of federal tax effect 2.1 3.2 — Change in valuation allowance (22.9) (26.7) (20.2) Nondeductible expenses (5.0) (2.3) (2.0) Effect of foreign operations (0.6) (0.2) (0.3) Tax credits 4.5 6.5 1.4 Other (1.0) (2.5) (1.2) Total (1.9) % (1.0) % (1.3) % The Company’s significant components of its deferred tax assets and liabilities were as follows (in thousands): As of January 31, 2021 2020 Deferred tax assets: Accruals and reserves $ 3,455 $ 1,946 Deferred revenue 746 1,367 Net operating loss carryforwards 89,595 80,432 Tax credit carryforwards 14,135 10,624 Stock-based compensation 5,465 2,700 Gross deferred tax assets $ 113,396 $ 97,069 Less: valuation allowance (110,223) (92,214) Total deferred tax assets $ 3,173 $ 4,855 Deferred tax liabilities: Property and equipment $ (2,329) $ (3,687) Deferred sales commissions (2,151) (2,357) Total deferred tax liabilities $ (4,480) $ (6,044) Net deferred tax liabilities $ (1,307) $ (1,189) A valuation allowance is provided when it is more likely than not that some portion of the deferred tax assets will not be realized. Management believes that, based on a number of factors, it is more likely than not that the U.S. federal and state net deferred tax assets will not be fully realized, such that a full valuation allowance has been recorded. A valuation allowance of $110.2 million, $92.2 million, and $59.3 million has been established by the Company as of January 31, 2021, 2020, and 2019, respectively. The gross change in the valuation allowance during the years ended January 31, 2021, 2020, and 2019 was an increase of $18.0 million, $32.9 million, and $11.5 million, respectively, primarily due to current year losses. As of January 31, 2021, the Company had net operating loss (“NOL”) carryforwards of $360.0 million for U.S. federal and $213.4 million for U.S. state income tax purposes available to offset future taxable income. The net operating losses generated during the year ended January 31, 2021 can be carried forward indefinitely for federal purposes. The federal net operating losses generated before the year ended January 31, 2019 carry forward for a 20-year period and if unutilized will begin to expire in 2030. The California net operating loss carryforwards begin to expire in 2030. The Company also had research tax credit carryforwards of $11.8 million for U.S. federal and $7.8 million for U.S. state income tax purposes. The federal research tax credits expire beginning in 2030, and the U.S. state tax credits can be carried forward indefinitely. Internal Revenue Code Section 382 places a limitation (the “Section 382 Limitation”) on the amount of taxable income that can be offset by net operating loss carryforwards after a change in control (generally greater than a 50% change in ownership) of a loss corporation. Generally, after a control change, a loss corporation cannot deduct operating loss carryforwards in excess of the Section 382 Limitation. Due to these “change in ownership” provisions, utilization of the net operating loss and income tax credit carryforwards may be subject to an annual limitation regarding their utilization against taxable income in future periods. The Company may have had an ownership shift as a result of its IPO in September 2020 that would result in Section 382 limitations through January 31, 2021. However, the Company does not expect any resulting limitations on its ability to utilize its net operating loss or research tax carryovers. The Company files income tax returns in the United States federal jurisdiction, several U.S. state jurisdictions, and various foreign jurisdictions. For jurisdictions in which tax filings are made, the Company is generally subject to income tax examination for all fiscal years since inception. Due to the Company’s net operating loss carryforwards, all tax years since inception remain subject to adjustment for U.S. federal and California tax returns. There are tax years which remain subject to examination in other U.S. state jurisdictions that are not material to the Company’s consolidated financial statements. In the Company’s major foreign jurisdictions – India and Poland – the tax years subsequent to 2016 remain open to examination. The following shows the changes in the gross amount of unrecognized tax benefits (in thousands): Year Ended January 31, 2021 2020 2019 Unrecognized tax benefits, beginning of year $ 3,252 $ 2,119 $ 1,279 Increase related to prior year tax positions 66 382 279 Decreases related to prior year tax positions — (65) — Increases related to current year tax positions 895 816 561 Unrecognized tax benefits, end of year $ 4,213 $ 3,252 $ 2,119 As of January 31, 2021, the Company had $4.2 million of unrecognized tax benefits. Due to the Company’s full valuation allowance against all U.S. federal and state net deferred tax assets, the Company’s unrecognized tax benefits, if recognized, would not affect the effective tax rate. The Company recognizes interest accrued related to unrecognized tax benefits and penalties as income tax expense. Related to the unrecognized tax benefits noted above, the Company did not accrue any penalties or interest during the years ended January 31, 2021, 2020, and 2019. The Company regularly assesses the likelihood of adverse outcomes resulting from examinations to determine the adequacy of its provision for income taxes, and monitors the progress of ongoing discussions with tax authorities and the impact, if any, of the expected expiration of the statute of limitations in various taxing jurisdictions. The Company believes that an adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Company’s tax audits are resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income taxes in the period such resolution occurs. Although the timing of the resolution or closure of audits is not certain, the Company does not believe that it is reasonably possible that its unrecognized tax benefits could change within the next 12 months. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Jan. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss per Share Basic net loss per share attributable to the Company’s common stockholders is computed by dividing the net loss attributable to the Company’s common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is the same as basic net loss per share for all years presented because the effects of potentially dilutive items were anti-dilutive given the Company’s net loss position in each period presented. The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share data): Year Ended January 31, 2021 2020 2019 Net loss $ (80,297) $ (92,137) $ (47,789) Weighted-average shares outstanding, basic and diluted 48,805 14,907 12,314 Net loss per share, basic and diluted $ (1.65) $ (6.18) $ (3.88) The following potential common shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented (in thousands): Year Ended January 31, 2021 2020 2019 Stock options 24,768 27,841 22,911 RSUs 3,757 — — ESPP 133 — — Warrants 32 32 22 Shares subject to repurchase 140 270 — Assumed options for Jask Labs acquisition 140 234 — Issuable shares for Jask Labs acquisition — 799 — Redeemable convertible preferred stock — 63,762 53,776 Total anti-dilutive securities 28,970 92,938 76,709 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jan. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsIn March 2021, the Company entered into a definitive agreement to acquire DF Labs S.p.A. (“DFLabs”), an Italian corporation and a leader in security orchestration, automation and response (“SOAR”) technology. The transaction is subject to customary closing conditions, including certain government approvals in Italy, and is anticipated to close in the second quarter of fiscal 2022. The total amount to be paid by the Company in the transaction to acquire the shares and certain indebtedness of DFLabs will be $44.0 million, which amount will be subject to customary purchase price adjustments determined at closing. The purchase price for the shares of DFLabs will be paid in a combination of cash and shares of the Company’s common stock, with the shares to be valued based on the average trading price of the Company’s common stock over a trailing period measured prior to the closing. The Company is currently evaluating the purchase price allocation for this transaction. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The Company’s consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company’s consolidated financial statements and accompanying notes include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Principles of Consolidation | The Company’s consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company’s consolidated financial statements and accompanying notes include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Fiscal Year | The Company’s fiscal year ends on January 31. Unless otherwise stated, references to year in these consolidated financial statements relate to the above described fiscal year rather than calendar year. |
Segment Information | The Company operates as one operating and reportable segment. The Company’s chief operating decision maker is its chief executive officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, and allocating resources. |
Use of Estimates and Judgments | The preparation of the Company’s consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, as of the date of the financial statements, and the reported amounts of income and expenses during the reporting period. These estimates are based on information available as of the date of the financial statements and may involve subjective or significant judgment by the Company; therefore, actual results could differ from the Company’s estimates. The Company’s accounting policies that involve judgment include revenue recognition, period of benefit for deferred sales commissions, assumptions used for estimating the fair value of common stock to calculate stock-based compensation (prior to the closing of the IPO), capitalization of internal-use software costs, valuation of goodwill and intangible assets, allowance for doubtful accounts, and valuation allowances associated with income taxes. |
Covid-19 | While the duration and extent of the COVID-19 pandemic depends on future developments that cannot be accurately predicted at this time, such as the extent and effectiveness of containment actions, it has already had an adverse effect on the global economy and the lasting effects of the pandemic continue to be unknown. The Company may experience customer losses, including due to bankruptcy or customers ceasing operations, which may result in delays in collections or an inability to collect accounts receivable from these customers. The extent to which COVID-19 may continue to impact the Company’s financial condition, results of operations, or liquidity continues to remain uncertain, and as of the date of issuance of these financial statements, the Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or an adjustment to the carrying value of the Company’s assets or liabilities. These estimates may change, as new events occur and additional information is obtained, which will be recognized in the consolidated financial statements as soon as they become known. Actual results could differ from those estimates, and any such differences may be material to the Company’s financial statements. |
Revenue | In accordance with ASC 606, revenue is recognized when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration the Company expects to be entitled to receive in exchange for these services. The Company determines revenue recognition through the following steps: 1. Identification of the contract, or contracts, with the customer The Company considers the terms and conditions of the contract and its customary business practices in identifying contracts under ASC 606. The Company determines it has a contract with a customer when the contract is fully approved by both parties, it can identify each party’s rights regarding the services to be transferred, it can identify the payment terms for the services, and it has determined the customer has the ability and intent to pay and the contract has commercial substance. At contract inception, the Company evaluates whether two or more contracts should be combined and accounted for as a single contract and whether the combined or single contract includes more than one performance obligation. The Company applies judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s historical payment experience or, in the case of a new customer, credit and financial information pertaining to the customer. 2. Identification of the performance obligations in the contract Performance obligations promised in a contract are identified based on the services and the products that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from third parties or the Company, and are distinct in the context of the contract, whereby the transfer of the services and the products is separately identifiable from other promises in the contract. The Company’s performance obligations consist of subscription and support services. 3. Determination of the transaction price The transaction price is determined based on the consideration to which the Company expects to be entitled in exchange for transferring services to the customer. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. The Company’s policy is to exclude sales and other indirect taxes when measuring the transaction price. None of the Company’s contracts contain a significant financing component. 4. Allocation of the transaction price to the performance obligation in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price (“SSP”). The Company determines the SSP based on an observable standalone selling price when it is available, as well as other factors, including the price charged to customers, its discounting practices, and the Company’s overall pricing objectives, while maximizing observable inputs. 5. Recognition of the revenue when, or as, the Company satisfies a performance obligation Revenue is recognized at the time the related performance obligation is satisfied by transferring the control of the promised service to a customer. Revenue is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those services. The Company generates all its revenue from contracts with customers. The Company generates revenue from subscriptions to customers that enable them to access the Company’s cloud-based platform. Subscription arrangements with customers do not provide the customer with the right to take possession of the Company’s software at any time. Instead, customers are granted continuous access to the platform over the contractual period. A time-elapsed method is used to measure progress as control is transferred evenly over the contractual period. Accordingly, the fixed consideration related to subscription fees is generally recognized on a straight-line basis over the contract term, commencing on the date the service is made available to the customer and all other revenue recognition criteria have been met. The typical subscription term is one The Company allocates revenue to each performance obligation based on its relative standalone selling price and generally determines standalone selling prices based on a range of actual prices charged to customers. The Company capitalizes certain sales commissions, including related payroll taxes, earned by the Company’s sales force, which are considered to be incremental costs that would not be incurred absent the contract, and recoverable costs of acquiring a contract with a customer. Commissions earned on the initial acquisition of a contract are amortized over a period of benefit of five years on a straight-line basis. The period of benefit is estimated by considering factors such as the expected life of the Company’s subscription contracts, |
Accounts Receivable, Net and Contract Assets | Accounts receivable consist of amounts billed and currently due from customers. The Company’s accounts receivable are subject to collection risk. Gross accounts receivable are adjusted for estimated losses resulting from the inability of the Company’s customers to fulfill their payment obligations. The Company periodically reviews factors such as past collection experience, specific allowances for known troubled accounts, and other currently available evidence to determine the best estimate of probable losses inherent in the receivables. As of January 31, 2021, there was $0.1 million recorded as an allowance for doubtful accounts for the Company’s accounts receivables. There was no allowance for doubtful accounts as of January 31, 2020. As of January 31, 2021, one customer accounted for 10% of total accounts receivable. As of January 31, 2020, no individual customer accounted for 10% or more of total accounts receivable. The Company performs ongoing credit evaluations of its customers and maintain allowances for potential credit losses on customers’ accounts when deemed necessary. |
Concentrations of Risk | The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. Although the Company deposits its cash with high-quality credit rated financial institutions, the deposits, at times, may exceed federally insured limits. The Company has not experienced any losses on its deposits of cash and cash equivalents. Cash equivalents consist of money market funds which are invested through financial institutions in the United States. Management believes that the institutions are financially stable and, accordingly, minimal credit risk exists. |
Foreign Currency Transactions | The functional currency of the Company’s foreign subsidiaries is the respective local currency. All asset and liability accounts of the Company’s foreign subsidiaries are translated into U.S. dollars using the exchange rate on the balance sheet date. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are recorded as a separate component on the consolidated statements of comprehensive loss. Equity transactions are translated using historical exchange rates. Expenses are translated using the average exchange rate during the year. Foreign currency transaction gains and losses are included in interest and other (expense) income, net in the Company’s consolidated statements of operations. |
Cash and Cash Equivalents | The Company’s cash and cash equivalents consist primarily of cash deposits and money market funds. The Company considers all highly liquid investments purchased with maturities of three months or less at the date of purchase to be cash equivalents. |
Property and Equipment, Net | Property and equipment are stated at cost less accumulated depreciation. Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Costs of maintenance and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. Upon retirement or sale, the cost and related accumulated depreciation and amortization are removed from the Company’s consolidated balance sheet and the resulting gain or loss is reflected in the Company’s consolidated statement of operations. The following table presents the estimated useful lives of the Company’s property and equipment: Useful Life Computer and hardware equipment 3 years Furniture and fixtures 5 years Leasehold improvements Shorter of lease term or estimated useful life Capitalized internal-use software 3 years In accordance with its policy, the Company reviewed the estimated useful lives of its fixed assets and determined the actual lives of furniture and fixtures were longer than the estimated useful lives used for depreciation purposes in the Company’s financial statements. In the fourth quarter of fiscal 2021, the Company changed the estimated useful lives of its furniture and fixtures from three years to five years to better reflect the estimated periods during which these assets will remain in service. The effect of this change had an immaterial impact on the Company’s consolidated financial statements. |
Capitalized Internal-Use Software Costs | The Company capitalizes certain costs related to its enterprise cloud computing services and certain projects for internal use incurred during the application development stage. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. Internal-use software is amortized on a straight-line basis over its estimated useful life. The Company capitalized $1.5 million and $6.1 million of internal-use software costs during the years ended January 31, 2021 and 2020, respectively. Amortization of internal-use software costs included in cost of revenue in the consolidated statements of operations was $0.7 million, $0.9 million, and $1.3 million for the years ended January 31, 2021, 2020, and 2019, respectively. Fully amortized capitalized internal-use software was written off in the amount of $8.0 million during the year ended January 31, 2021. As of January 31, 2021 and 2020, the Company included capitalized internal-use software costs of $1.7 million and $0.9 million within property and equipment, net, respectively. |
Goodwill and Other Acquired Intangible Assets | Goodwill represents the excess of the purchase price over the fair value of net assets acquired in connection with business combinations accounted for using the acquisition method of accounting. The Company has one reporting unit and performs such testing of goodwill in the fourth quarter of each year, or as events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. These triggering events that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of goodwill or a significant decrease in expected cash flows. The Company’s test for goodwill impairment starts with a qualitative assessment to determine whether it is necessary to perform the quantitative goodwill impairment test. If the Company determines, based on the qualitative factors, that the fair value of the reporting unit is more likely than not less than the carrying amount, then a quantitative goodwill impairment test is required. There was no impairment of goodwill recorded for the years ended January 31, 2021, 2020, or 2019. Intangible assets consist of identifiable intangible assets, primarily developed technology, resulting from the Company’s acquisitions. Acquired intangible assets are recorded at cost, net of accumulated amortization. Intangible assets are amortized on a straight-line basis over their estimated useful lives. Amortization costs are included in cost of revenue within the consolidated statements of operations. Long-lived assets, including intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable |
Business Combinations | The Company accounts for its acquisitions using the acquisition method of accounting. The Company allocates the fair value of purchase consideration to the tangible assets acquired, liabilities assumed, and intangible assets acquired, based on their estimated fair values. The excess of the fair value of purchase consideration over the values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair value of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain identifiable assets include, but are not limited to, reproduction costs, expected long-term market growth, future expected operating expenses, cost build-up to support obligations, and appropriate discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. Acquisition costs, such as legal and consulting fees, are expensed as incurred. During the measurement period, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded in the consolidated statement of operations. See Note 5 for additional information regarding the Company’s acquisitions. |
Deferred Rent | The Company leases real estate facilities under operating leases. For leases that contain rent escalation or rent concession provisions, the Company records the total rent expense during the lease term on a straight-line basis over the term of the lease. The Company records the difference between the rent paid and the straight-line rent expense as a deferred rent liability within accrued expenses and other current liabilities and other liabilities on the accompanying consolidated balance sheets. |
Research and Development Expense | The Company’s costs related to research, design, maintenance, and minor enhancements of the Company’s platform are expensed as incurred. These costs consist primarily of personnel and related expenses, including allocated overhead costs, contractor and consulting fees related to the design, development, testing, and enhancements of the Company’s platform, and software, hardware, and cloud infrastructure fees for staging and development related to research and development activities necessary to support growth in the Company’s employee base and in the adoption of its platform. |
Advertising and Promotion Costs | Costs related to advertising and promotions of the Company’s service offerings are charged to sales and marketing expense as incurred. |
Stock-based Compensation | The Company measures and recognizes compensation expense for all stock-based payment awards granted to employees, directors, and non-employees based on the estimated fair values on the date of the grant. The fair value of options granted and purchase rights granted under the Employee Stock Purchase Plan (“ESPP”) is estimated on the grant date using the Black-Scholes option pricing model. The fair value of Restricted Stock Units (“RSUs”) is estimated on the date of grant based on the fair value of the Company’s underlying common stock. Prior to the Company’s IPO, the fair value of the Company’s common stock for financial reporting purposes was determined considering objective and subjective factors, including valuations from third-party valuation experts, and required judgment to determine the fair value of common stock for financial reporting purposes as of the date of each equity grant or modification. The Company recognizes stock-based compen sation expense for service-based awards and our ESPP purchase rights on a straight-line basis over the service period, net of actual forfeitures. The Company also has certain options and RSUs that have performance-based vesting conditions; stock-based compensation expense for such awards is recognized using an accelerated attribution method from the time the vesting condition is probable through the time the vesting condition has been achieved. Prior to the Company’s IPO, the Company recognized stock-based compensation expense for RSUs on an accelerated attribution method as the RSUs were subject to service-based and performance-based vesting conditions, which included a liquidity event condition, and in certain cases, the achievement of certain other performance metrics. None of the RSUs would vest unless the liquidity event condition was satisfied. Upon the completion of the IPO, the liquidity event condition was considered probable and the Company recognized cumulative stock-based compensation expense using the accelerated attribution method related to RSUs that had vested as of the IPO. The remaining unrecognized stock-based compensation expense related to the RSUs will be recognized over the remaining requisite service period. All RSUs granted after the IPO, under the 2020 Equity Incentive Plan (the “2020 Plan”) will not be subject to a liquidity event condition and will be recognized on a straight-line basis over the service period. |
Income Taxes | The Company records income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s consolidated financial statements or income tax returns. The Company recognizes deferred tax assets to the extent that the Company believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize deferred tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company operates in various tax jurisdictions and is subject to audit by various tax authorities. The Company provides for tax contingencies whenever it is deemed more likely than not that a tax asset has been impaired, or a tax liability has been incurred for events such as tax claims or changes in tax laws. Tax contingencies are based upon their technical merits, applicable tax law, and the specific facts and circumstances as of each reporting period. Changes in facts and circumstances could result in material changes to the amounts recorded for such tax contingencies. The Company records uncertain tax positions on the basis of a two-step process whereby (1) a determination is made as to whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position, and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is greater than 50% likely to be realized upon ultimate settlement with the related tax authority. |
Other Comprehensive Income (Loss) | Other comprehensive income (loss) includes amounts recorded in equity that are not the result of transactions with stockholders. The changes in other comprehensive income (loss) are a result of translation gains and losses for the Company’s foreign subsidiaries assets, liabilities, revenue, and expenses. |
Net Loss Per Share | Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period, less any shares subject to repurchase. Diluted net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period giving effect to all potentially dilutive securities to the extent they are dilutive. Basic and diluted net loss attributable to common stockholders per share is presented in conformity with the two-class method required for participating securities as the redeemable convertible preferred stock is considered a participating security because it participates in dividends with common stock. The Company also considers the shares issued upon the early exercise of stock options subject to repurchase to be participating securities, because holders of such shares have non-forfeitable dividend rights in the event a dividend is paid on common stock. In addition, shares that are contingently issuable are excluded from the computation of basic earnings per share. Because the Company has reported a net loss for all periods presented, diluted net loss per common share is the same as basic net loss per common share for those periods. |
Related Party Transactions | Certain members of the Company’s Board of Directors serve as directors of, or are executive officers of, and in some cases are investors in, companies that are customers or vendors of the Company. |
Recently Adopted and Issued Accounting Pronouncements | The Company assesses the adoption impacts of recently issued accounting pronouncements by the Financial Accounting Standards Board (“FASB”) on its consolidated financial statements. The sections below describe impacts from newly adopted pronouncements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350)—Simplifying the Test for Goodwill Impairment, which simplifies the required methodology to calculate an impairment charge for goodwill. The Company adopted this guidance as of February 1, 2020, and the adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718) Improvements to Nonemployee Share-Based Payment Accounting . The amendments in the updated guidance expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The Company adopted this guidance as of February 1, 2020, and the adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) , which modifies the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures for certain investments. The Company adopted this guidance as of February 1, 2020, and the adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40) , which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The Company adopted this guidance, on a prospective basis, as of February 1, 2020, and the adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) . The amendments in the updated guidance simplify the accounting for income taxes by removing certain exceptions and improving consistent application of other areas of the topic by clarifying the guidance. The Company adopted this guidance, on a prospective basis, as of February 1, 2020, and the adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements Under the JOBS Act, the Company meets the definition of an emerging growth company and can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the Company is no longer an emerging growth company or until the Company affirmatively and irrevocably opts out of the extended transition period. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . This guidance is intended to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information about lease arrangements. In June 2020, the FASB issued ASU No. 2020-05, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842): Effective Dates for Certain Entities, which amended the effective date of the new guidance. The deferral applies only if those entities have not yet issued their financial statements as of June 3, 2020. The new guidance will be effective for the Company for the fiscal year ending January 31, 2023 and interim periods within the fiscal year ending January 31, 2024. The Company is beginning its process of adoption and plans to adopt this guidance as of February 1, 2021. While the adoption is in progress, the Company expects that adoption will result in the recognition of right-of-use assets and lease liabilities that were not previously recognized, which will increase total assets and liabilities on its consolidated balance sheet. The Company does not expect the adoption of Topic 842 to have a material impact on its statement of operations or cash flows. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326) |
Fair Value Measurements | The Company measures its financial assets and liabilities at fair value each reporting period using a fair value hierarchy that prioritizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value, as follows: Level 1 Observable inputs, such as quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company uses the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment | The following table presents the estimated useful lives of the Company’s property and equipment: Useful Life Computer and hardware equipment 3 years Furniture and fixtures 5 years Leasehold improvements Shorter of lease term or estimated useful life Capitalized internal-use software 3 years Property and equipment, net, consisted of the following (in thousands): January 31, January 31, Computer and hardware equipment $ 2,206 $ 1,954 Furniture and fixtures 1,773 1,129 Leasehold improvements 2,416 2,120 Capitalized internal-use software 3,386 9,823 Gross property and equipment (a) 9,781 15,026 Accumulated depreciation and amortization (5,625) (12,033) Property and equipment, net $ 4,156 $ 2,993 ______________ |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present the fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis, based on the three-tier fair value hierarchy (in thousands): As of January 31, 2021 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 397,200 $ — $ — $ 397,200 As of January 31, 2020 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 98,469 $ — $ — $ 98,469 Liabilities: Redeemable convertible preferred stock warrant liability $ — $ — $ 270 $ 270 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Property, Plant and Equipment | The following table presents the estimated useful lives of the Company’s property and equipment: Useful Life Computer and hardware equipment 3 years Furniture and fixtures 5 years Leasehold improvements Shorter of lease term or estimated useful life Capitalized internal-use software 3 years Property and equipment, net, consisted of the following (in thousands): January 31, January 31, Computer and hardware equipment $ 2,206 $ 1,954 Furniture and fixtures 1,773 1,129 Leasehold improvements 2,416 2,120 Capitalized internal-use software 3,386 9,823 Gross property and equipment (a) 9,781 15,026 Accumulated depreciation and amortization (5,625) (12,033) Property and equipment, net $ 4,156 $ 2,993 ______________ |
Long-lived Assets by Geographic Areas | The following table presents the Company’s long-lived assets by geographic region for the periods indicated (in thousands): January 31, January 31, United States $ 3,381 $ 1,970 International 775 1,023 Total long-lived assets $ 4,156 $ 2,993 |
Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): January 31, January 31, Accrued compensation $ 12,627 $ 6,262 Accrued sales commissions 3,823 5,310 Accrued taxes 1,382 1,773 Accrued professional services 256 1,308 Accrued other expenses 5,228 5,718 Accrued expenses and other current liabilities $ 23,316 $ 20,371 |
Acquisitions, Intangible Assets
Acquisitions, Intangible Assets, and Goodwill (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The assets acquired and liabilities assumed in connection with the acquisition were recorded at their fair value on the date of acquisition as follows (in thousands): Amount Cash $ 782 Restricted cash 300 Accounts receivable 503 Prepaid expenses and other assets 659 Fixed assets 367 Intangible assets 17,500 Goodwill 41,368 Accounts payable (1,760) Deferred revenue, current (2,358) Accrued and other current liabilities (1,609) Deferred revenue, noncurrent (354) Other liabilities (291) Total acquisition consideration $ 55,107 |
Business Acquisition, Pro Forma Information | The pro forma results have been prepared based on estimates and assumptions, which the Company believes are reasonable; however, they are not necessarily indicative of the consolidated results of operations had the acquisition occurred on February 1, 2017, or of future results of operations (in thousands): Year Ended January 31, 2020 2019 Revenues $ 157,428 $ 104,657 Net loss $ (114,951) $ (85,597) |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of January 31, 2021, future amortization expense related to acquired developed technology was as follows (in thousands): Amortization Expense 2022 $ 6,146 2023 4,510 Total amortization expense $ 10,656 As of January 31, 2020, future amortization expense related to acquired developed technology was as follows (in thousands): Amortization Expense 2021 $ 6,759 2022 6,146 2023 4,510 Total amortization expense $ 17,415 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | As of January 31, 2021, future annual minimum lease payments under non-cancelable operating leases were as follows (in thousands): Minimum 2022 $ 5,320 2023 4,725 2024 1,898 2025 350 2026 55 Total future minimum lease payments $ 12,348 |
Other Commitments | As of January 31, 2021, the Company had future minimum commitments for hosting and other non-cancelable obligations as follows (in thousands): Minimum 2022 $ 61,451 2023 60,000 2024 70,000 Total future minimum commitments $ 191,451 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents the Company’s revenue by geographic region, based on the billing address of the customer, for the periods indicated (in thousands): Year Ended January 31, 2021 2020 2019 United States $ 171,142 $ 130,713 $ 87,043 International 31,495 24,343 16,599 Total revenue $ 202,637 $ 155,056 $ 103,642 |
Stockholders' Equity (Deficit_2
Stockholders' Equity (Deficit) and Equity Incentive Plans (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Equity [Abstract] | |
Schedule of Reserved Shares of Common Stock | The Company has reserved shares of its common stock as follows (in thousands): January 31, January 31, Redeemable convertible preferred stock — 63,762 Warrants 32 32 Stock options outstanding 24,768 27,841 RSUs outstanding 3,757 — Future issuance under equity incentive plans 12,978 3,071 Future issuance in connection with Jask Labs acquisition — 256 Future issuance in connection with assumed options for Jask Labs acquisition — 234 Shares available subject to the 2020 ESPP Plan 2,000 — Total reserved shares 43,535 95,196 |
Schedule of Stock Options Valuation Assumptions | The fair value of each stock option was estimated on the date of grant using the following assumptions during the period: Year Ended January 31, 2021 2020 2019 Expected term (in years) 5.7 - 6.1 5.0 - 7.3 5.5 - 6.7 Risk-free interest rate 0.4% - 0.9% 1.6% - 2.5% 2.5% - 3.0% Expected volatility 52.5% - 55.2% 49.7% - 52.5% 46.6% - 53.1% Expected dividend yield — — — |
Schedule of ESPP Valuation Assumptions | The following table summarizes the assumptions used in the Black-Scholes option-pricing model to determine the fair value of the ESPP purchase rights: Year Ended January 31, 2021 Expected term (in years) 0.7 - 2.2 Risk-free interest rate 0.11% - 0.14% Expected volatility 55.4% - 65.5% Expected dividend yield — |
Share-based Payment Arrangement, Option, Activity | The following table is a summary of option activity during the year ended January 31, 2021: Number of Weighted Weighted Aggregate (in thousands) (years) (in thousands) Balance at January 31, 2020 27,841 $ 3.72 7.7 $ 233,918 Options granted 1,662 $ 12.33 Options exercised (2,409) $ 2.84 Options cancelled (2,326) $ 5.99 Balance at January 31, 2021 24,768 $ 4.16 6.7 $ 749,111 Options exercisable at January 31, 2021 16,816 $ 2.86 6.0 $ 530,504 |
Share-based Payment Arrangement, Restricted Stock Unit, Activity | The following table is a summary of RSU activity for the year ended January 31, 2021: Number of Shares Weighted (in thousands) RSUs outstanding at February 1, 2020 — Granted 3,882 $ 14.99 Forfeited (125) $ 12.59 RSUs outstanding at January 31, 2021 3,757 $ 15.07 RSUs expected to vest at January 31, 2021 3,757 $ 15.07 |
Share-based Payment Arrangement, Expensed and Capitalized, Amount | The following table presents total stock-based compensation expense included in the consolidated statements of operations for the years ended January 31, 2021, 2020, and 2019 (in thousands): Year Ended January 31, 2021 2020 2019 Cost of revenue $ 510 $ 179 $ 52 Research and development (a) 13,728 5,940 1,609 Sales and marketing 11,532 5,791 1,856 General and administrative (b) 15,181 10,124 3,060 Total stock-based compensation expense $ 40,951 $ 22,034 $ 6,577 ________________ (a) During the years ended January 31, 2021, 2020, and 2019, the Company capitalized stock-based compensation of $0.3 million, $0.5 million, and $0.1 million, respectively, related to internal-use software development costs. The research and development stock-based compensation amounts are presented net of the capitalized costs. (b) During the year ended January 31, 2020, the Company’s board of directors approved modifications to immediately vest 172,708 options that had been granted previously, resulting in additional stock-based compensation expense of $1.6 million, which was recorded to general and administrative expenses during the year ended January 31, 2020. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The Company’s loss before income taxes consisted of the following (in thousands): Year Ended January 31 2021 2020 2019 United States $ (82,850) $ (95,884) $ (49,516) International 4,069 4,648 2,334 Total $ (78,781) $ (91,236) $ (47,182) |
Schedule of Components of Income Tax Expense (Benefit) | The components of the provision for income taxes are as follows (in thousands): Year Ended January 31, 2021 2020 2019 Current: Federal $ — $ — $ — State 201 (5) 41 Foreign 1,081 571 340 Total current tax expense $ 1,282 $ 566 $ 381 Deferred: Federal $ — $ (291) $ — State — — — Foreign 234 626 226 Total deferred tax expense $ 234 $ 335 $ 226 Total tax expense $ 1,516 $ 901 $ 607 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the Company’s effective income tax rate to the expected income tax rate, computed by applying the federal statutory income tax rate of 21.0% for each of the years ended January 31, 2021, 2020, and 2019, to the Company’s loss before provision for income taxes, is as follows: Year Ended January 31 2021 2020 2019 Federal tax statutory rate 21.0 % 21.0 % 21.0 % State tax, net of federal tax effect 2.1 3.2 — Change in valuation allowance (22.9) (26.7) (20.2) Nondeductible expenses (5.0) (2.3) (2.0) Effect of foreign operations (0.6) (0.2) (0.3) Tax credits 4.5 6.5 1.4 Other (1.0) (2.5) (1.2) Total (1.9) % (1.0) % (1.3) % |
Schedule of Deferred Tax Assets and Liabilities | The Company’s significant components of its deferred tax assets and liabilities were as follows (in thousands): As of January 31, 2021 2020 Deferred tax assets: Accruals and reserves $ 3,455 $ 1,946 Deferred revenue 746 1,367 Net operating loss carryforwards 89,595 80,432 Tax credit carryforwards 14,135 10,624 Stock-based compensation 5,465 2,700 Gross deferred tax assets $ 113,396 $ 97,069 Less: valuation allowance (110,223) (92,214) Total deferred tax assets $ 3,173 $ 4,855 Deferred tax liabilities: Property and equipment $ (2,329) $ (3,687) Deferred sales commissions (2,151) (2,357) Total deferred tax liabilities $ (4,480) $ (6,044) Net deferred tax liabilities $ (1,307) $ (1,189) |
Schedule of Unrecognized Tax Benefits Roll Forward | The following shows the changes in the gross amount of unrecognized tax benefits (in thousands): Year Ended January 31, 2021 2020 2019 Unrecognized tax benefits, beginning of year $ 3,252 $ 2,119 $ 1,279 Increase related to prior year tax positions 66 382 279 Decreases related to prior year tax positions — (65) — Increases related to current year tax positions 895 816 561 Unrecognized tax benefits, end of year $ 4,213 $ 3,252 $ 2,119 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share data): Year Ended January 31, 2021 2020 2019 Net loss $ (80,297) $ (92,137) $ (47,789) Weighted-average shares outstanding, basic and diluted 48,805 14,907 12,314 Net loss per share, basic and diluted $ (1.65) $ (6.18) $ (3.88) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following potential common shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented (in thousands): Year Ended January 31, 2021 2020 2019 Stock options 24,768 27,841 22,911 RSUs 3,757 — — ESPP 133 — — Warrants 32 32 22 Shares subject to repurchase 140 270 — Assumed options for Jask Labs acquisition 140 234 — Issuable shares for Jask Labs acquisition — 799 — Redeemable convertible preferred stock — 63,762 53,776 Total anti-dilutive securities 28,970 92,938 76,709 |
Description of Business and B_2
Description of Business and Basis of Presentation (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 09, 2020 | Sep. 21, 2020 | Oct. 09, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 |
Subsidiary, Sale of Stock [Line Items] | ||||||
Underwriters' discounts and commissions and offering costs | $ 4,362 | $ 2,018 | $ 0 | |||
Convertible preferred stock converted into common stock per share (in shares) | 1 | |||||
Deferred offering costs | $ 6,500 | $ 3,300 | ||||
Common Stock | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Conversion of convertible redeemable preferred stock to common stock upon initial public stock offering (in shares) | 63,761,950 | 63,762,000 | ||||
Redeemable convertible preferred stock warrants | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Number of redeemable convertible preferred stock warrants converted (in shares) | 32,276 | |||||
Number of redeemable convertible preferred stock warrants converted per share (in shares) | 1 | |||||
IPO | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Number of shares sold (in shares) | 14,800,000 | |||||
Price of shares sold (in USD per share) | $ 22 | $ 22 | $ 22 | |||
Net proceeds from shares sold | $ 342,700 | |||||
Underwriters' discounts and commissions and offering costs | $ 31,800 | |||||
Underwriter's Option | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Number of shares sold (in shares) | 2,220,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | 9 Months Ended | 12 Months Ended | ||
Oct. 31, 2020 | Jan. 31, 2021USD ($)customersegment | Jan. 31, 2020USD ($)customer | Jan. 31, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Number of operating segments | segment | 1 | |||
Number of reporting segments | segment | 1 | |||
Stock-based compensation expense | $ 40,951,000 | $ 22,034,000 | $ 6,577,000 | |
Allowance for doubtful accounts for accounts receivable | 100,000 | 0 | ||
Unbilled receivables | 1,000,000 | 2,200,000 | ||
Contract assets | $ 1,600,000 | 0 | ||
Amortization period for deferred sales commissions | 5 years | |||
Costs capitalized during period | $ 25,800,000 | 16,100,000 | ||
Amortized costs during period | 11,500,000 | 8,800,000 | 7,000,000 | |
Impairment loss | 0 | 0 | 0 | |
Foreign currency transaction gains (losses) | (400,000) | (300,000) | (100,000) | |
Software capitalized | 1,500,000 | 6,100,000 | ||
Amortization of internal-use software | 700,000 | 900,000 | 1,300,000 | |
Fully amortized internal-use software written off | 8,000,000 | |||
Internal-use software | 1,700,000 | 900,000 | ||
Impairment of capitalized internal-use software | 0 | 6,689,000 | 0 | |
Impairment of goodwill | 0 | 0 | 0 | |
Foreign currency translation adjustments | 168,000 | (116,000) | (241,000) | |
Impairment of intangible assets | 0 | 0 | 0 | |
Costs related to advertising and promotions | 7,200,000 | 9,500,000 | 5,800,000 | |
Cash payments from related party transaction | $ 1,500,000 | $ 0 | $ 0 | |
Credit Concentration Risk | Accounts Receivable | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of customers | customer | 1 | 0 | ||
Concentration risk percentage | 10.00% | |||
Furniture and fixtures | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Useful Life | 3 years | 5 years | ||
Minimum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Subscription term | 1 year | |||
Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Subscription term | 3 years | |||
COVID-19 Pandemic | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance | $ 1,200,000 | |||
Stock-based compensation expense | $ 100,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Estimated Useful Lives of Property and Equipment (Details) | 9 Months Ended | 12 Months Ended |
Oct. 31, 2020 | Jan. 31, 2021 | |
Computer and hardware equipment | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 3 years | |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 3 years | 5 years |
Capitalized internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 3 years |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Liabilities: | ||
Redeemable convertible preferred stock warrant liability | $ 270 | |
Money market funds | ||
Assets: | ||
Money market funds | $ 397,200 | 98,469 |
Level 1 | ||
Liabilities: | ||
Redeemable convertible preferred stock warrant liability | 0 | |
Level 1 | Money market funds | ||
Assets: | ||
Money market funds | 397,200 | 98,469 |
Level 2 | ||
Liabilities: | ||
Redeemable convertible preferred stock warrant liability | 0 | |
Level 2 | Money market funds | ||
Assets: | ||
Money market funds | 0 | 0 |
Level 3 | ||
Liabilities: | ||
Redeemable convertible preferred stock warrant liability | 270 | |
Level 3 | Money market funds | ||
Assets: | ||
Money market funds | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Sep. 21, 2020 | |
Class of Warrant or Right [Line Items] | |||
Transfers in and out of level 3, liabilities | $ 0 | $ 0 | |
Transfers in and out of level 3, assets | $ 0 | $ 0 | |
Redeemable convertible preferred stock warrants | |||
Class of Warrant or Right [Line Items] | |||
Number of redeemable convertible preferred stock warrants converted (in shares) | 32,276 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 9,781 | $ 15,026 |
Accumulated depreciation and amortization | (5,625) | (12,033) |
Property and equipment, net | 4,156 | 2,993 |
Computer and hardware equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 2,206 | 1,954 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 1,773 | 1,129 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 2,416 | 2,120 |
Capitalized internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 3,386 | 9,823 |
Construction in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 600 | $ 100 |
Balance Sheet Components - Narr
Balance Sheet Components - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Depreciation and amortization expense | $ 1,500,000 | $ 1,700,000 | $ 1,700,000 |
Impairment of capitalized internal-use software | 0 | $ 6,689,000 | $ 0 |
Fully amortized internal-use software written off | $ 8,000,000 |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Long-Lived Assets by Geographical Location (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 4,156 | $ 2,993 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 3,381 | 1,970 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 775 | $ 1,023 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Liabilities and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Property, Plant and Equipment [Abstract] | ||
Accrued compensation | $ 12,627 | $ 6,262 |
Accrued sales commissions | 3,823 | 5,310 |
Accrued taxes | 1,382 | 1,773 |
Accrued professional services | 256 | 1,308 |
Accrued other expenses | 5,228 | 5,718 |
Accrued expenses and other current liabilities | $ 23,316 | $ 20,371 |
Acquisitions, Intangible Asse_2
Acquisitions, Intangible Assets, and Goodwill - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 25, 2019 | Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 |
Business Acquisition [Line Items] | ||||
Common stock and assumed awards issued as consideration for acquisitions | $ 0 | $ 47,923 | $ 95 | |
Weighted average remaining useful life | 1 year 9 months 18 days | 2 years 8 months 12 days | ||
Stock-based compensation expense | $ 40,951 | $ 22,034 | 6,577 | |
Net loss | (80,297) | (92,137) | (47,789) | |
Intangible assets | 20,100 | 20,100 | ||
Intangible assets, accumulated amortization | 9,400 | 2,700 | ||
Amortization expense for intangible assets | 6,800 | $ 2,600 | 300 | |
Other Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Weighted average remaining useful life | 1 year 6 months | |||
Consideration | $ 9,700 | |||
Equity issued (in shares) | 334,246 | |||
Goodwill acquired | $ 8,400 | |||
Intangible assets acquired | 1,300 | |||
Acquisition-related expenses | 400 | |||
Jask Labs Inc. | ||||
Business Acquisition [Line Items] | ||||
Purchase consideration | $ 55,100 | |||
Cash paid | 11,200 | |||
Cash paid, placed in escrow | $ 900 | |||
Escrow term | 15 months | |||
Unrecognized compensation expense related to options | $ 1,100 | |||
Tax benefit related to release of valuation allowance of deferred tax assets | $ 300 | |||
Weighted average remaining useful life | 3 years | |||
Acquisition-related expenses | 2,600 | |||
Acquisition-related costs, included as part of purchase consideration | $ 800 | |||
Jask Labs Inc. | Acquisition-related Expenses | ||||
Business Acquisition [Line Items] | ||||
Net loss | (3,400) | (3,400) | ||
Jask Labs Inc. | Tax Benefit for Release of Valuation Allowance | ||||
Business Acquisition [Line Items] | ||||
Net loss | 300 | 300 | ||
Jask Labs Inc. | Accelerated stock-based compensation | ||||
Business Acquisition [Line Items] | ||||
Net loss | (100) | $ (100) | ||
Jask Labs Inc. | Restricted Stock | ||||
Business Acquisition [Line Items] | ||||
Awards granted (in shares) | 130,180 | |||
Awards granted, fair value (in USD per share) | $ 12.11683 | |||
Vesting period | 2 years | |||
Stock-based compensation expense | $ 800 | 200 | ||
Unrecognized stock-based compensation | $ 600 | $ 1,400 | ||
Common Stock | Jask Labs Inc. | ||||
Business Acquisition [Line Items] | ||||
Common stock and assumed awards issued as consideration for acquisitions | $ 43,300 | |||
Equity issued (in shares) | 3,573,659 | |||
Equity issued, placed in escrow (in shares) | 543,095 | |||
Equity issued, placed in escrow | $ 6,600 | |||
Option | Jask Labs Inc. | ||||
Business Acquisition [Line Items] | ||||
Common stock and assumed awards issued as consideration for acquisitions | $ 600 | |||
Equity issued (in shares) | 265,075 | |||
Equity issued and stock-based compensation expense | $ 1,700 |
Acquisitions, Intangible Asse_3
Acquisitions, Intangible Assets, and Goodwill - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 | Oct. 25, 2019 |
Business Acquisition [Line Items] | |||
Goodwill | $ 50,672 | $ 50,672 | |
Jask Labs Inc. | |||
Business Acquisition [Line Items] | |||
Cash | $ 782 | ||
Restricted cash | 300 | ||
Accounts receivable | 503 | ||
Prepaid expenses and other assets | 659 | ||
Fixed assets | 367 | ||
Intangible assets | 17,500 | ||
Goodwill | 41,368 | ||
Accounts payable | (1,760) | ||
Deferred revenue, current | (2,358) | ||
Accrued and other current liabilities | (1,609) | ||
Deferred revenue, noncurrent | (354) | ||
Other liabilities | (291) | ||
Total acquisition consideration | $ 55,107 |
Acquisitions, Intangible Asse_4
Acquisitions, Intangible Assets, and Goodwill - Pro Forma Financial Information (Details) - Jask Labs Inc. - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Business Acquisition [Line Items] | ||
Revenues | $ 157,428 | $ 104,657 |
Net loss | $ (114,951) | $ (85,597) |
Acquisitions, Intangible Asse_5
Acquisitions, Intangible Assets, and Goodwill - Future Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Business Combinations [Abstract] | ||
Year one | $ 6,146 | $ 6,759 |
Year two | 4,510 | 6,146 |
Year three | 4,510 | |
Total | $ 10,656 | $ 17,415 |
Debt (Details)
Debt (Details) - Line of Credit - Revolving Credit Facility - USD ($) | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | |
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 50,000,000 | ||
Quick ratio, minimum | 1.25 | ||
Quick ratio, maximum | 1.75 | ||
Borrowings | $ 24,300,000 | ||
Balance outstanding | $ 0 | $ 0 | |
Inside of Debt Covenant Quick Ratio Threshold | |||
Debt Instrument [Line Items] | |||
Fixed interest rate | 5.25% | ||
Outside of Debt Covenant Quick Ratio Threshold | |||
Debt Instrument [Line Items] | |||
Fixed interest rate | 4.75% | ||
Prime Rate | Inside of Debt Covenant Quick Ratio Threshold | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.75% | ||
Prime Rate | Outside of Debt Covenant Quick Ratio Threshold | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.25% |
Commitment and Contingencies -
Commitment and Contingencies - Future Minimum Lease Payments (Details) $ in Thousands | Jan. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 5,320 |
2023 | 4,725 |
2024 | 1,898 |
2025 | 350 |
2026 | 55 |
Total future minimum lease payments | $ 12,348 |
Commitment and Contingencies _2
Commitment and Contingencies - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Rent expense | $ 4,200,000 | $ 3,200,000 | $ 2,400,000 | |
Indemnifications | SAAS Revenue Arrangements with Customers | ||||
Loss Contingencies [Line Items] | ||||
Accrual for settlement | 0 | 0 | ||
Indemnifications | Indemnifications for Directors and Officers | ||||
Loss Contingencies [Line Items] | ||||
Accrual for settlement | 0 | $ 0 | ||
Litigation and Other Matters | ||||
Loss Contingencies [Line Items] | ||||
Settlement amount | $ 4,500,000 | |||
Accrual for settlement | $ 4,500,000 |
Commitment and Contingencies _3
Commitment and Contingencies - Future Other Obligations (Details) $ in Thousands | Jan. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 61,451 |
2023 | 60,000 |
2024 | 70,000 |
Total future minimum commitments | $ 191,451 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 202,637 | $ 155,056 | $ 103,642 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 171,142 | 130,713 | 87,043 |
International | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 31,495 | $ 24,343 | $ 16,599 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized that was included in deferred revenue at beginning of period | $ 85.9 | $ 60.8 |
Revenue - Performance Obligatio
Revenue - Performance Obligation (Details) $ in Millions | Jan. 31, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation | $ 252.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-02-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation | $ 151.9 |
Performance obligation, timing | 12 months |
Stockholders' Equity (Deficit_3
Stockholders' Equity (Deficit) and Equity Incentive Plans - Stocks Reserved for Future Issuance (Details) - shares | Jan. 31, 2021 | Sep. 17, 2020 | Jan. 31, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for issuance (in shares) | 43,535,000 | 95,196,000 | |
Jask Labs Inc. | Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for issuance (in shares) | 0 | 256,000 | |
Jask Labs Inc. | Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for issuance (in shares) | 0 | 234,000 | |
Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for issuance (in shares) | 24,768,000 | 27,841,000 | |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for issuance (in shares) | 3,757,000 | 0 | |
Future issuance under equity incentive plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for issuance (in shares) | 12,978,000 | 3,071,000 | |
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for issuance (in shares) | 2,000,000 | 2,000,000 | 0 |
Warrants | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for issuance (in shares) | 32,000 | 32,000 | |
Redeemable convertible preferred stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for issuance (in shares) | 0 | 63,762,000 |
Stockholders' Equity (Deficit_4
Stockholders' Equity (Deficit) and Equity Incentive Plans - Narrative (Details) | Sep. 21, 2020USD ($)shares | Sep. 17, 2020periodshares | Oct. 25, 2019USD ($)$ / sharesshares | Jan. 31, 2021USD ($)planvote$ / sharesshares | Jan. 31, 2020USD ($)$ / sharesshares | Jan. 31, 2019USD ($)$ / sharesshares | Jan. 31, 2018shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Convertible preferred stock converted into common stock (in shares) | shares | 63,761,950 | 63,762,000 | |||||
Convertible preferred stock converted into common stock per share (in shares) | shares | 1 | ||||||
Convertible preferred stock converted into common stock | $ 340,200,000 | $ 340,167,000 | |||||
Convertible preferred stock, shares issued (in shares) | shares | 0 | 63,762,000 | |||||
Convertible preferred stock, shares outstanding (in shares) | shares | 0 | 63,762,000 | 53,776,000 | 53,776,000 | |||
Common stock, shares authorized (in shares) | shares | 1,000,000,000 | 122,000,000 | |||||
Common stock, par value (in USD per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||||
Common stock, shares issued (in shares) | shares | 102,484,000 | 18,984,000 | |||||
Common stock, shares outstanding (in shares) | shares | 102,484,000 | 18,984,000 | |||||
Number of votes per share | vote | 1 | ||||||
Dividends declared (in USD per share) | $ / shares | $ 0 | $ 0 | |||||
Number of plans | plan | 2 | ||||||
Liability for early exercise of options | $ 200,000 | $ 400,000 | |||||
Early exercise of options (in shares) | shares | 75,250 | 139,750 | |||||
Number of shares available for issuance (in shares) | shares | 43,535,000 | 95,196,000 | |||||
Stock-based compensation expense | $ 40,951,000 | $ 22,034,000 | $ 6,577,000 | ||||
Accelerated stock-based compensation expense | 1,600,000 | ||||||
Amount with held from employees for future purchases | 2,500,000 | ||||||
Common Stock Transfers, Former Employees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense | 300,000 | 1,400,000 | 1,700,000 | ||||
Tender Offer, Employees and Former Employees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense | $ 4,800,000 | ||||||
Price of shares sold (in USD per share) | $ / shares | $ 12.11683 | ||||||
Number of shares sold (in shares) | shares | 1,686,446 | ||||||
General and administrative | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense | 15,181,000 | $ 10,124,000 | 3,060,000 | ||||
General and administrative | Tender Offer, Employees and Former Employees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense | 2,600,000 | ||||||
Research and development | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense | 13,728,000 | 5,940,000 | 1,609,000 | ||||
Research and development | Tender Offer, Employees and Former Employees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense | 1,500,000 | ||||||
Sales and marketing | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense | 11,532,000 | 5,791,000 | 1,856,000 | ||||
Sales and marketing | Tender Offer, Employees and Former Employees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense | 700,000 | ||||||
Cost of revenue | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense | $ 510,000 | 179,000 | $ 52,000 | ||||
Cost of revenue | Tender Offer, Employees and Former Employees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense | 100,000 | ||||||
Executive Officers | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense | $ 0 | ||||||
Jask Labs Inc. | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation expense related to options | $ 1,100,000 | ||||||
Option | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 4 years | ||||||
Expiration period | 10 years | ||||||
Number of shares available for issuance (in shares) | shares | 24,768,000 | 27,841,000 | |||||
Option, performance based | Executive Officers | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted (in shares) | shares | 280,316 | ||||||
RSUs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 4 years | ||||||
Number of shares available for issuance (in shares) | shares | 3,757,000 | 0 | |||||
ESPP | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of additional shares available for grant per year (in shares) | shares | 2,500,000 | ||||||
Number of additional shares available for grant per year percentage | 1.00% | ||||||
Unrecognized compensation expense, period for recognition | 1 year 2 months 12 days | ||||||
Unrecognized stock-based compensation, excluding options | $ 7,100,000 | ||||||
Number of shares available for issuance (in shares) | shares | 2,000,000 | 2,000,000 | 0 | ||||
Offering period | 24 months | ||||||
Number of purchase periods | period | 4 | ||||||
Purchase period | 6 months | ||||||
Purchase price of common stock, percent | 85.00% | ||||||
Stock-based compensation expense | $ 1,300,000 | ||||||
2020 Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares available for grant (in shares) | shares | 13,000,000 | ||||||
Number of additional shares available for grant per year (in shares) | shares | 12,500,000 | ||||||
Number of additional shares available for grant per year percentage | 5.00% | ||||||
Equity Incentive Plans | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted, weighted average grant date fair value (in USD per share) | $ / shares | $ 6.31 | $ 5.51 | $ 1.76 | ||||
Options exercised, aggregate intrinsic value | $ 31,100,000 | $ 12,000,000 | $ 2,600,000 | ||||
Income tax benefits recognized for stock-based compensation arrangements | 0 | ||||||
Unrecognized compensation expense related to options | $ 35,600,000 | $ 52,000,000 | |||||
Options granted (in shares) | shares | 1,662,000 | ||||||
Options granted (in USD per share) | $ / shares | $ 12.33 | ||||||
Options outstanding (in shares) | shares | 24,768,000 | 27,841,000 | |||||
Options exercisable (in shares) | shares | 16,816,000 | ||||||
Options exercisable (in USD per share) | $ / shares | $ 2.86 | ||||||
Options exercised (in shares) | shares | 2,409,000 | ||||||
Equity Incentive Plans | Option | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation expense, period for recognition | 2 years 4 months 24 days | 3 years 1 month 6 days | |||||
Equity Incentive Plans | RSUs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation expense, period for recognition | 2 years 6 months | ||||||
Unrecognized stock-based compensation, excluding options | $ 35,800,000 | ||||||
Equity Incentive Plans | RSUs Subject to Performance Metrics | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized stock-based compensation, excluding options | 300,000 | ||||||
Jask Plans | Jask Labs Inc. | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted, weighted average grant date fair value (in USD per share) | $ / shares | $ 6.39 | ||||||
Unrecognized compensation expense related to options | $ 200,000 | $ 600,000 | |||||
Options granted (in shares) | shares | 265,075 | ||||||
Options granted (in USD per share) | $ / shares | $ 9.86 | ||||||
Options outstanding (in shares) | shares | 140,348 | 233,852 | |||||
Options exercisable (in shares) | shares | 106,510 | 124,184 | |||||
Options exercisable (in USD per share) | $ / shares | $ 9.93 | $ 9.21 | |||||
Options exercised (in shares) | shares | 52,262 | ||||||
2010 Plan | RSUs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Accelerated stock-based compensation expense | 10,900,000 | ||||||
2010 Plan | RSUs Subject to Performance Metrics | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Accelerated stock-based compensation expense | $ 1,400,000 |
Stockholders' Equity (Deficit_5
Stockholders' Equity (Deficit) and Equity Incentive Plans - Summary of Assumptions (Details) | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Option | Equity Incentive Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate minimum (percent) | 0.40% | 1.60% | 2.50% |
Risk-free interest rate maximum (percent) | 0.90% | 2.50% | 3.00% |
Expected volatility rate minimum (percent) | 52.50% | 49.70% | 46.60% |
Expected volatility rate maximum (percent) | 55.20% | 52.50% | 53.10% |
Expected dividend yield (percent) | 0.00% | 0.00% | 0.00% |
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate minimum (percent) | 0.11% | ||
Risk-free interest rate maximum (percent) | 0.14% | ||
Expected volatility rate minimum (percent) | 55.40% | ||
Expected volatility rate maximum (percent) | 65.50% | ||
Expected dividend yield (percent) | 0.00% | ||
Minimum | Option | Equity Incentive Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 5 years 8 months 12 days | 5 years | 5 years 6 months |
Minimum | ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 8 months 12 days | ||
Maximum | Option | Equity Incentive Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 years 1 month 6 days | 7 years 3 months 18 days | 6 years 8 months 12 days |
Maximum | ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 2 years 2 months 12 days |
Stockholders' Equity (Deficit_6
Stockholders' Equity (Deficit) and Equity Incentive Plans - Option Activity (Details) - Equity Incentive Plans - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Number of Shares | ||
Beginning balance (in shares) | 27,841 | |
Options granted (in shares) | 1,662 | |
Options exercised (in shares) | (2,409) | |
Options cancelled (in shares) | (2,326) | |
Ending balance (in shares) | 24,768 | 27,841 |
Options exercisable (in shares) | 16,816 | |
Weighted Average Exercise Price | ||
Beginning balance (in USD per share) | $ 3.72 | |
Options granted (in USD per share) | 12.33 | |
Options exercised (in USD per share) | 2.84 | |
Options cancelled (in USD per share) | 5.99 | |
Ending balance (in USD per share) | 4.16 | $ 3.72 |
Options exercisable (in USD per share) | $ 2.86 | |
Options outstanding, weighted average remaining contractual term | 6 years 8 months 12 days | 7 years 8 months 12 days |
Options exercisable, weighted average remaining contractual term | 6 years | |
Options outstanding, aggregate intrinsic value | $ 749,111 | $ 233,918 |
Options exercisable, aggregate intrinsic value | $ 530,504 |
Stockholders' Equity (Deficit_7
Stockholders' Equity (Deficit) and Equity Incentive Plans - RSU Activity (Details) - RSUs - Equity Incentive Plans shares in Thousands | 12 Months Ended |
Jan. 31, 2021$ / sharesshares | |
Number of Shares | |
Beginning balance (in shares) | 0 |
Granted (in shares) | 3,882 |
Forfeited (in shares) | (125) |
Ending balance (in shares) | 3,757 |
Weighted Average Grant Date Fair Value per Share | |
Granted (in USD per share) | $ / shares | $ 14.99 |
Forfeited (in USD per share) | $ / shares | 12.59 |
Outstanding (in USD per share) | $ / shares | $ 15.07 |
Expected to vest, number of shares (in shares) | 3,757 |
Expected to vest, weighted average grant date fair value per share (in USD per share) | $ / shares | $ 15.07 |
Stockholders' Equity (Deficit_8
Stockholders' Equity (Deficit) and Equity Incentive Plans - Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | $ 40,951 | $ 22,034 | $ 6,577 |
Stock-based compensation capitalized as internal-use software costs | 321 | $ 531 | 81 |
Accelerated stock-based compensation, number of shares (in shares) | 172,708 | ||
Accelerated stock-based compensation expense | $ 1,600 | ||
Cost of revenue | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 510 | 179 | 52 |
Research and development | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 13,728 | 5,940 | 1,609 |
Sales and marketing | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 11,532 | 5,791 | 1,856 |
General and administrative | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | $ 15,181 | $ 10,124 | $ 3,060 |
401(k) Plan (Details)
401(k) Plan (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Retirement Benefits [Abstract] | ||
Contributions to 401k | $ 0 | $ 0 |
Income Taxes - Loss Before Inco
Income Taxes - Loss Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (82,850) | $ (95,884) | $ (49,516) |
International | 4,069 | 4,648 | 2,334 |
Total | $ (78,781) | $ (91,236) | $ (47,182) |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Current: | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 201 | (5) | 41 |
Foreign | 1,081 | 571 | 340 |
Total current tax expense | 1,282 | 566 | 381 |
Deferred: | |||
Federal | 0 | (291) | 0 |
State | 0 | 0 | 0 |
Foreign | 234 | 626 | 226 |
Total deferred tax expense | 234 | 335 | 226 |
Total tax expense | $ 1,516 | $ 901 | $ 607 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Income Tax Rate (Details) | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal tax statutory rate | 21.00% | 21.00% | 21.00% |
State tax, net of federal tax effect | 2.10% | 3.20% | 0.00% |
Change in valuation allowance | (22.90%) | (26.70%) | (20.20%) |
Nondeductible expenses | (5.00%) | (2.30%) | (2.00%) |
Effect of foreign operations | (0.60%) | (0.20%) | (0.30%) |
Tax credits | 4.50% | 6.50% | 1.40% |
Other | (1.00%) | (2.50%) | (1.20%) |
Total | (1.90%) | (1.00%) | (1.30%) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 |
Deferred tax assets: | |||
Accruals and reserves | $ 3,455 | $ 1,946 | |
Deferred revenue | 746 | 1,367 | |
Net operating loss carryforwards | 89,595 | 80,432 | |
Tax credit carryforwards | 14,135 | 10,624 | |
Stock-based compensation | 5,465 | 2,700 | |
Gross deferred tax assets | 113,396 | 97,069 | |
Less: valuation allowance | (110,223) | (92,214) | $ (59,300) |
Total deferred tax assets | 3,173 | 4,855 | |
Deferred tax liabilities: | |||
Property and equipment | (2,329) | (3,687) | |
Deferred sales commissions | (2,151) | (2,357) | |
Total deferred tax liabilities | (4,480) | (6,044) | |
Net deferred tax liabilities | $ (1,307) | $ (1,189) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Tax Credit Carryforward [Line Items] | ||||
Valuation allowance | $ 110,223 | $ 92,214 | $ 59,300 | |
Increase in valuation allowance | 18,000 | 32,900 | 11,500 | |
Unrecognized tax benefits | 4,213 | $ 3,252 | $ 2,119 | $ 1,279 |
Federal | ||||
Tax Credit Carryforward [Line Items] | ||||
Operating loss carryforwards | 360,000 | |||
Federal | Research tax credit carryforward | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforward | 11,800 | |||
State | ||||
Tax Credit Carryforward [Line Items] | ||||
Operating loss carryforwards | 213,400 | |||
State | Research tax credit carryforward | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforward | $ 7,800 |
Income Taxes - Change in Gross
Income Taxes - Change in Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning of year | $ 3,252 | $ 2,119 | $ 1,279 |
Increase related to prior year tax positions | 66 | 382 | 279 |
Decreases related to prior year tax positions | 0 | (65) | 0 |
Increases related to current year tax positions | 895 | 816 | 561 |
Unrecognized tax benefits, end of year | $ 4,213 | $ 3,252 | $ 2,119 |
Net Loss Per Share - Calculatio
Net Loss Per Share - Calculation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Net loss | $ (80,297) | $ (92,137) | $ (47,789) |
Weighted-average shares outstanding, basic and diluted (in shares) | 48,805 | 14,907 | 12,314 |
Net loss per share, basic and diluted (in USD per share) | $ (1.65) | $ (6.18) | $ (3.88) |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Antidilutive Securities (Details) - shares shares in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive securities (in shares) | 28,970 | 92,938 | 76,709 |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive securities (in shares) | 24,768 | 27,841 | 22,911 |
RSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive securities (in shares) | 3,757 | 0 | 0 |
ESPP | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive securities (in shares) | 133 | 0 | 0 |
Warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive securities (in shares) | 32 | 32 | 22 |
Shares subject to repurchase | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive securities (in shares) | 140 | 270 | 0 |
Assumed options for Jask Labs acquisition | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive securities (in shares) | 140 | 234 | 0 |
Issuable shares for Jask Labs acquisition | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive securities (in shares) | 0 | 799 | 0 |
Redeemable convertible preferred stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive securities (in shares) | 0 | 63,762 | 53,776 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Mar. 12, 2021USD ($) |
Subsequent Event | DF Labs S.p.A. | |
Subsequent Event [Line Items] | |
Purchase consideration | $ 44 |
Uncategorized Items - sumo-2021
Label | Element | Value |
Restricted Cash | us-gaap_RestrictedCash | $ 300,000 |
Restricted Cash | us-gaap_RestrictedCash | 40,000 |
Restricted Cash | us-gaap_RestrictedCash | $ 300,000 |